In the case of a negative externality, in order to achieve efficiency the government must set the _________________ equal to the marginal ____________________.
A. tax; external costs
B. tax; external benefits
C. subsidy; external costs
D. subsidy; external benefits
E. tax; private costs
Answer: A
Economics
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The real interest rate is equal to the nominal interest rate minus:
A. accounting profit. B. economic profit. C. taxes. D. the inflation rate.
Economics
We can expect very small deviations from interest rate parity in
A) the domestic markets. B) the Eurocurrency market. C) the goods market. D) All of the above.
Economics