The portion of deposits that banks need to hold at the Central Bank is:

A ________ in the long-run real interest rate ________ household's demand for durable goods

A) fall; increases B) rise; increases C) rise; does not affect D) fall; lowers

The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. Producing and consuming the efficient quantity of coffee in Kaffenia means that

A) the marginal social cost of the last pound of coffee is at the lowest possible value. B) the marginal social benefit of the last pound of coffee is at its highest possible value. C) to produce more coffee, the marginal social benefit of an additional pound of coffee is less than its marginal social cost. D) All of the above are correct.