Due in your discussion section the week of November 11. Numbered problems are in the back of the Frank/Bernanke textbook.. You do not need to write on or tear out the page. Using your own paper will preserve the resale value of the book.
Chapter 10, #2, #3
Chapter 11, #10.
Short thought piece: Pick an "externality" that you think has important implications for social welfare. Offer some evidence of its empirical significance. What kinds of public policies would you recommend to deal with it?