The money multiplier and the income multiplier are two ways of referring to the same concept.

Since there are smaller fluctuations in the equilibrium prices of final goods than in the prices of intermediate goods, the producer price index is more volatile than the consumer price index

a. True b. False Indicate whether the statement is true or false

Each of the following, except one, is a condition necessary for a private market solution to an externality problem. Which is the exception?

a. Legal rights must be clearly established. b. Legal rights must be easily transferred. c. The number of people involved must be very small. d. The amount of money involved must be very small. e. Side payments must be arranged without cost.