If the MC of polluting decreased, then what would happen to the optimal level of pollution?
A. Stay the same
B. Unsure
C. Increase
D. Decrease
Answer: D
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Identify the comovement (i.e., direction and timing) of the following variables over a business cycle:
(a) industrial production (b) unemployment (c) nominal interest rates (d) nominal money supply growth (e) investment
The length of the business cycle in any business cycle theory can vary, but the long-wave cycle (or longer wave cycle) refers to
a. war-induced business cycle theory b. the equilibrium of national income theory c. the innovation cycle theory d. interaction of the accelerator and multiplier theory e. real business cycle theory
During a major war between two oil producing nations, there would likely be
a. an increase in the price of oil because the supply of oil would decrease. b. an increase in the price of oil because the supply of oil would increase. c. a decrease in the price of oil because the supply of oil would decrease. d. a decrease in the price of oil because the supply of oil would increase.
Discuss in detail the three things mentioned in the text that the Federal Reserve did to deal with the 2007-2009 financial crisis