If the money supply in the economy were at MS3, to engage in expansionary policy the Federal Reserve Bank would use open market operation to move money supply to:

The optimal level of water and air quality

a. is zero, which is a pollution-free environment b. occurs when the marginal private cost of air quality equals its marginal social cost c. is greater if the marginal social cost curve of air quality shifts downward d. occurs when all negative externalities are eliminated e. eliminates the common pool problem

If, for a given disposable income level, the disposable income line lies above the consumption curve, saving:

a. equals consumption. b. equals disposable income. c. is less than zero. d. is equal to zero. e. is greater than zero.