Monetarists contend that an expansionary monetary policy will lead to a rise in the interest rate because __________ and the __________ effect will raise interest rates by more than the initial __________ effect lowers it

Suppose a farmer in Nebraska incurs $8,700 in crop damage from sparks that are created when a local railroad company sends trains along tracks bordering the farm. This damage can be best described as a:

a. negative externality. b. positive externality. c. transaction cost. d. social benefit.

The purpose of a Clarke tax is to

a. give people an incentive to truthfully reveal their preferences for a public good. b. raise enough revenue to pay for a public good. c. give producers an incentive to supply nonrivalrous public goods in socially efficient quantities. d. prevent the dissipation of rents that would occur with a nonexcludable public good.