The overall productivity crisis of the 1970s can be attributed, in part, to insufficient investment in research and development

An emissions tax equal to the marginal social cost of pollution at ___________ induces those believed to be polluting to internalize the externality and leads to the socially optimal quantity of pollution.

a. the socially optimal quantity of pollution b. the market-determined level of pollution c. the market-determined level of production d. zero pollution

Suppose that after five solid years of economic growth, Eurekaland begins to experience inflationary pressures due to strong consumer and investor confidence. If Eurekaland's Central Bank wants to prevent inflation from becoming a major problem, which of the following actions should it take?

A) It should reduce the money supply to push interest rates higher. B) It should increase the money supply to push interest rates higher. C) It should reduce the money supply to push interest rates lower. D) It should increase the money supply to push interest rates lower.