Under a system of marketable pollution permits, the government:

A. chooses a level of pollution.
B. distributes permits to polluting firms.
C. allows firms to trade permits.
D. All of these


Answer: D

Economics

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A necessary condition for a money economy to be self-regulating is that

A) wages must be flexible in an upward direction, but not in a downward direction. B) the economy must always be operating on its institutional production possibilities frontier. C) wages must be flexible in a downward direction, but not in an upward direction. D) interest rates must be flexible in the credit market. E) none of the above

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Which of the following is a major goal of short-run macroeconomic policy?

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When the economy is at full employment and inflation is present, the government could create a surplus budget by cutting its own spending and raising taxes. The Fed would be expected to:

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