If you invest in a foreign company by buying 8 percent of its shares of stock, you have engaged in

Private solutions to externalities are most effective if ________

A) transaction costs associated with bargaining are low B) transaction costs associated with bargaining are high C) property rights are not defined clearly D) a large number of people are affected by the externalities

Refer to Scenario 1. Once the full impact of the Fed's open market purchase and Sheila's deposit worked its way through the banking system, what is the maximum change on the money supply as a result of these two events?

A) Money supply falls by $100,000. B) Money supply falls by $1,000,000. C) Money supply rises by $10,000. D) Money supply rises by $1,000,000.