If the cross elasticity of demand for good A with respect to good B is +2.7, then good A is

Open market purchases ________ reserves and the monetary base thereby ________ the money supply

A) raise; lowering B) raise; raising C) lower; lowering D) lower; raising

Corrective taxes are often difficult to implement because _____

a. those affected by the externality are often loathe to use political means to implement the tax b. those creating the externality threaten to shut down c. those who suffer from the externality refuse to talk about it d. the creator of an externality will use political means to try to prevent the tax