For an inferior good, the income elasticity of demand is negative

Typically, increasing the difference between the discount and federal funds rates causes

A) an increase in market interest rates. B) high corporate profits. C) no change in interest rates. D) a boom in the economy.

If the MSB/MCA graph indicates that an emissions fee of $10 per unit would lead to the optimum level of emissions, but the government set a fee of $5 per unit, emissions would

A) not be reduced at all. B) not occur at all. C) be above the optimum level, but curtailed somewhat from what they would have been with no fee at all. D) be above the optimum level by 50%. E) be below the optimum level by 50%.