Sulfur dioxide emissions allowances are available for purchase on the Chicago Mercantile Exchange, and several environmental groups have raised money to purchase these certificates, which they subsequently destroy
What would be the impact of these environmental groups purchasing and then destroying these cap-and-trade certificates on the price of these certificates in the market? A) The price rises.
B) The price falls to zero.
C) The price falls, but not to zero.
D) The price remains unchanged because the certificates are destroyed.
A
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The Ricardo-Barro effect is based on the idea that ________ when the government has a budget deficit
A) investment demand increases because expected future profits increase B) people decrease their private saving C) investment demand decreases because of the higher real interest rate D) people immediately increase their tax payments E) people increase their private saving
If the price of crude oil falls, the equilibrium price of gasoline ________ and the equilibrium quantity ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases