If the production of a good involves positive externalities, ________
A) the market price of the good is higher than its optimal price
B) the market price of the good is lower than its optimal price
C) the average cost of production of the good in the long run is zero
D) the variable cost of production of the good is zero
B
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The quantity theory asserts that real GDP is
A) not influenced by the quantity of money. B) never different from potential GDP. C) equal to nominal GDP multiplied by the quantity of money. D) equal to nominal GDP divided by the quantity of money.
When a customer deposits $100 into a checking account, it: a. increases the bank's liabilities only
b. decreases the bank's liabilities only. c. increases the bank's assets only. d. decreases both the bank's liabilities and its assets. e. increases both the bank's liabilities and its assets.