When an activity results in the creation of external benefits, markets will produce more than the socially optimal level of that activity

The variables that determine a household's budget line are

A) its preferences and income. B) its preferences and prices. C) prices and income. D) None of the above are correct.

When the money market is drawn with the value of money on the vertical axis, the price level increases if

a. money demand shifts right and decreases if money supply shifts right. b. money demand shifts right and decreases if money supply shifts left. c. money demand shifts left and decreases if money supply shifts right. d. money demand shifts left and decreases if money supply shifts left.