Refer to the figure below. If the Federal Reserve wants to raise the interest rate to 7%, it must ________ the money supply to ________. 

What the economist calls externalities create social problems

A) because opportunity costs are low when people live close to one another. B) only when the externalities are negative spillovers. C) partly because people have a limited ability to empathize. D) when people know about all the consequences of their behavior.

The components of a well-run incentive compensation scheme include all of the following EXCEPT

a. evaluating the identified performance measures b. demonstrating that supervisors are friendly outside of the work environment c. rewarding workers who for meet performance measures d. identifying the relevant measures on which to evaluate employees