Tradable pollution permits
a. have prices that are set by the government.
b. will be more valuable to firms that can reduce pollution only at high costs.
c. are likely to create a higher level of total pollution.
d. are less desirable than command-and-control policies to reduce pollution.
b
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Refer to the diagram. If eurozone nations decide to import more agricultural products from the United States, we would expect:
A. the demand for euros to increase and the euro to appreciate.
B. the demand for euros to increase and the dollar to appreciate.
C. the supply of euros to increase and the euro to depreciate.
D. the supply of euros to decrease and the dollar to depreciate.
When the reserve requirement is decreased, the excess reserves of member banks are ________.
A. reduced, but the multiple by which the commercial banking system can lend is unaffected B. reduced and the multiple by which the commercial banking system can lend is increased C. increased and the multiple by which the commercial banking system can lend is reduced D. increased and the multiple by which the commercial banking system can lend is increased
An increase in perceived risk of foreign assets increased both the financial account surplus and current account deficit in the United States during the late 1990s
Indicate whether the statement is true or false
If Apple's iTunes Music Store increases its "fee" for its music downloads, the law of demand predicts that
A) the number of iTunes music downloads would increase. B) there would be no change in the demand for iTunes music downloads. C) the number of iTunes music downloads would decrease. D) iTunes music supply would change but demand would not.