An increase in the marginal cost of reducing greenhouse gas emissions will lead to lower air quality

Suppose the government deficit increases, but the interest rate remains the same. Which of the following things might have happened simultaneously to keep interest rates the same?

a. The government reduces the amount that people may put into savings accounts on which the interest is tax exempt. b. Because they are optimistic about the future of the economy, firms desire to borrow more to purchase physical capital. c. Consumers decide to decrease consumption and work more. d. All of the above could explain why the interest rate would be unchanged.

The law of diminishing marginal returns in a manufacturing plant of a fixed capacity implies that, eventually, employing

A. one less worker will decrease the average product per worker. B. one less worker will not affect the average product per worker. C. one more worker will increase the average product per worker. D. one more worker will decrease the average product per worker.