A government payment to producers for the difference between a target price and the price at which producers were able to sell their goods is known as a:
a. subsidy

People will want to hold less money if the price level

a. increases or if the interest rate increases. b. decreases or if the interest rate decreases. c. increases or if the interest rate decreases. d. decreases or if the interest rate increases.

There are two coal-burning electrical utilities—one in tiny, rural Wanunu, Montana, and another in metropolitan Detroit, Michigan—and each produces the same amount of pollution per unit of output. If a permit tax is going to be used to force these

firms to internalize pollution costs, the tax levied should be A) the same in each city. B) higher in Wanunu than in Detroit. C) higher in Detroit than in Wanunu. D) less than zero in each city.