In order to smooth the influence of shocks throughout an economy, it is helpful for governments within a monetary union to have

Will is risk averse and has $1,000 with which to make a financial investment. He has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option B is a low-risk stock that analysts expect to be worth about $1,102.50 in two years. Option C is a high-risk stock that is expected to be worth about $1,200 in four years. Will should choose

a. option A. b. option B. c. option C. d. either option A or option B because Will is indifferent between those two options and they are superior to option C.

The market demand curve for a public good:

A. Is derived in the same manner as demand curves for private goods B. Is derived by horizontally summing all individual demand curves C. Shows the total value that all individuals place on each additional unit of the good D. Shows the total number of units that would be produced by the public sector at each possible price