When negative externalities exist, the competitive market supply curve does not include all of the costs borne by members of society

Refer to the scenario above. Which of the following statements is true about the model's prediction?

A) The prediction can be applied to estimate the returns only for a limited number of years of additional education. B) The prediction is an approximate relationship and may not hold for everyone. C) The prediction cannot be verified empirically. D) The prediction is precise, exact, and accurate for the entire population.

Mr. Garrison has recently obtained a bank card from South Park National Bank. Excited about the concept of using a little plastic card to get money from a machine, he quickly runs down to the nearest ATM and withdraws $500. This action has

A) reduced the bank's required reserves by $25 assuming the reserve ratio is 5 percent. B) reduced the money supply by $500. C) increased the money supply by $500. D) not changed the money supply.