________ is (are) an example of selling externality rights.
A. Having the damaged party avoid the damage
B. Direct subsidies for positive externalities
C. Auctioning the right have a garage sale each year
D. Government imposed taxes
Answer: C
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The Sarbanes-Oxley Act of 2002
A) requires that CEO's personally certify the accuracy of financial statements. B) mandates that firms raise funds for expansion only through the sale of stock or from bank loans, but not from the sale of corporate bonds. C) created the Consumer Financial Protection Bureau to be housed in the Federal Reserve. D) established the Financial Stability Oversight Council to identify risks to the financial system.
The spread between the interest rates on bonds with default risk and default-free bonds is called the
A) risk premium. B) junk margin. C) bond margin. D) default premium.
Which of the following would most likely increase the demand for peanut butter?
a. a decrease in the price of jelly, a good that is often used with peanut butter b. the discovery that excessive consumption of peanut butter is harmful to one's health c. crop failures that raise the price of peanuts d. the invention of a new product that consumers think is a good substitute for peanut butter
Spending (Aggregate Demand or AD)
What will be an ideal response?