The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, the equilibrium price per ton will be

One of the justifications of government stabilization policy is that it may

a. increase the fluctuations in inflation and employment. b. increase the multiplier effect of changes in autonomous spending. c. increase the volatility of economic variables. d. reduce the severity of inflation and unemployment.

If the exchange rate falls, U.S. residents pay

a. more dollars for foreign bonds and get more dollars from interest payments. b. more dollars for foreign bonds but get fewer dollars from interest payments. c. fewer dollars for foreign bonds and also get fewer dollars from interest payments. d. fewer dollars for foreign bonds but get more dollars from interest payments.