Taxes can yield the efficient level of pollution if the tax is set equal to the
A) marginal benefit of pollution.
B) marginal external cost of the pollution.
C) marginal social cost of the pollution.
D) equilibrium price of the pollution.
B
Economics
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When the interest rate increases, people will adjust their precautionary demand for money
A) downward or upward depending upon the actual supply of money. B) upward. C) not at all. D) downward.
Economics
Potential output is:
A. equal to actual output. B. the same as the natural rate of unemployment. C. also known as the output gap. D. the maximum sustainable amount of output.
Economics