The spending multiplier effect is the result of a shift in the aggregate expenditures (AE) line

If an emissions tax is imposed but it is less than the optimal Pigouvian tax, then:

a. the marginal social benefit of pollution is greater than the marginal social cost of pollution. b. the marginal social cost of pollution is greater than the marginal social benefit of pollution. c. total surplus will be maximized. d. the amount of pollution will be less than the socially optimal amount.

According to the efficient markets hypothesis, purchasing the reports of financial analysts

A) is likely to increase one's returns by an average of 10%. B) is likely to increase one's returns by about 3 to 5%. C) is not likely to be an effective strategy for increasing financial returns. D) is likely to increase one's returns by an average of about 2 to 3%.