The subject of borrowing by the U.S. from its citizens and from other countries, has resulted in one of the fiercest policy debates in recent years

Most economists believe that there are positive externalities associated with education. If they're right, the market for education fails to provide an efficient or socially optimal allocation of resources because the equilibrium

a. price and quantity would be too high b. price would be too low and quantity would be too high c. price and quantity would be too low d. price would be too high and quantity would be too low e. price and quantity would be just right

In a fractional reserve banking system,

A. the fraction of deposits that must be held is determined by the required reserve ratio. B. the required reserve ratio is set by the Federal Reserve System. C. banks hold reserves equal to only a fraction of their deposits. D. All of these responses are correct.