In what way do common resources give rise to negative externalities?
When one person uses a common resource, other people become worse off because there are now fewer units of the resource; thus, a negative externality arises.
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Exports are positively related to domestic income and negatively related to the exchange rate
Indicate whether the statement is true or false
A look at the historical data indicates that velocity for M1
a. has been more variable than the velocity for M2, but both have been fairly constant for the past 65 years. b. and M2 have both trended downward, but velocity for M2 has been more erratic than velocity for M11. c. has been fairly constant for the past 65 years, but velocity for M2 has trended downward. d. has trended upward in the past 65 years, but velocity for M2 has been more constant.
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Shares of ownership in corporations are referred to as:
A. stocks. B. collateral. C. limited liability. D. bonds.