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The social cost of carbon is:
a. the difference between the marginal private cost of carbon and the marginal social cost of carbon
b. the difference between the external cost of carbon and the marginal cost.
c. $1,000
d. the difference between the total cost of carbon and the average cost of carbon.
Use the supply and demand analysis of the market for reserves to explain how primary credit facility puts a ceiling on the federal funds rate and how interest on excess reserves puts a floor on the federal funds rate. (Use Graph)
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