If a firm had a fixed proportions technology, then the pollution produced by this firm
A) cannot be reduced.
B) can be reduced only by lowering the level of output (holding technology constant).
C) can be reduced by changing how the output is produced within the bounds of the existing technology.
D) can be reduced only by increasing the number of firms in the industry.
E) can be reduced only by changing the technology.
B
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When exchange rates are fixed and the foreign nation's interest rate increases, what happens next?
A) The home nation's IS curve shifts out because of a depreciation and an increase in the trade balance. B) The home nation's LM curve shifts right, and its interest rate falls. C) Fixed exchange rates force the home nation to raise its interest rates. D) The home nation and the foreign nation are always in equilibrium, so no changes occur.
"Tariffs today in the United States are much higher than in the past." Is the previous statement correct or incorrect?
What will be an ideal response?