Disposable income ________ when ________

A marginal external cost of a product is equal to

A) what the producer has to pay to hire resources to produce another unit. B) the cost someone other than the producer incurs when another unit is produced. C) the cost the producer incurs to produce another unit. D) what the consumer must pay when he or she buys the good or service. E) None of these answers describes a marginal external cost.

Suppose the U.S. public holds $1 trillion in government bonds, all with an 8 percent nominal interest rate

If the Federal Reserve can hold that nominal rate constant, what inflation rate would make the government's net interest expense exactly zero? A) 16 percent B) 8 percent C) 0 percent D) -8 percent