A factory can be thought of as

Which of the following occurs when an externality is internalized?

A) Higher social well-being B) Higher private benefit C) Larger deadweight loss D) Higher returns to scale

If the Japanese central bank performed a sterilized intervention to reduce the value of the yen, the most likely result is:

A) a lower value of the yen due to an increase in the monetary base in Japan. B) a lower value of the yen due to a decrease in Japanese interest rates. C) a higher value of the yen since the intervention was sterilized. D) no change in the value of the yen since neither the monetary base nor Japanese interest rates would be affected.