If a bank lends funds in the form of cash, then:
a. M1 and M2 do not change.
b. M2 stays the same, but M1 rises.
c. M2 stays the same, but M1 falls.
d. M2 rises, and M1 falls.
e. M1 and M2 rise.
.E
Economics
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Discuss studies based on the interest parity conditions
What will be an ideal response?
Economics
Three factories in Stinky City emit high quantities of sulfur dioxide into the local environment. The city government decides to set up a ____________________ that divides the allowable amount of this pollutant between the three companies. The companies can buy and sell these instruments, but the allowable amount of emissions goes down every year.
a. marketable permit program b. pollution charge c. pollution credit d. fine system
Economics