Today, Julie attended her 12:30 Economics class. If she hadn't gone to class, Julie would have gone out to lunch with friends. She had other options; she could have worked or slept in. Julie's opportunity cost of going to class is the

How does a decline in the real interest rate cause an increase in investment?

What will be an ideal response?

To enhance social welfare, the government should encourage the production of

a. all goods b. no goods c. goods that provide positive externalities d. goods whose social cost exceeds their private cost e. goods that provide negative externalities