Refer to the information provided in Figure 24.1 below to answer the question(s) that follow. Figure 24.1Refer to Figure 24.1. Suppose that the consumption function is C = 400 + 0.5Yd and taxes are $200 billion, at equilibrium the value of injections are

Markets tend to underallocate resources to the production of a good when

A) there are negative externalities. B) there are positive externalities. C) there are public goods produced. D) equilibrium occurs.

A country must adjust its economy, to maintain an exchange rate, when it is using:

A. fixed exchange rates. B. monetary policy. C. fiscal policy. D. flexible exchange rates.