Incentive-based regulations provide polluters no incentive to reduce pollution and are thus not used often.
A. True
B. False
C. Uncertain
B. False
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The interest rate is the price borrowers pay to borrow money. Key interest rates are controlled by the Federal Reserve System. If the Federal Reserve acts to reduce interest rates, economists would expect the demand for money to
A. increase. B. decrease. C. not change. D. be influenced by the interest rate, but with an uncertain effect.
Purchasing power parity exists when domestic currency:
a. maintains a fixed exchange rate with foreign currency. b. is not convertible into foreign currency. c. buys more goods at home than abroad. d. buys as many goods at home as it does abroad. e. appreciates in value against foreign currency.
Based on these graphs, if there was no supply-side effect to a tax cut, prices would ______.
a. remain at PL1
b. move to PL2
c. move to PL3
d. remain at PL2
In 2012, which of the following sources of energy contributed the largest share in U.S. electricity generation?
A. Petroleum B. Nuclear C. Hydropower D. Natural gas