Holding all else constant, an increase in the preferences of Americans for Mexican goods will ________ the supply of dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.

How does a cap-and-trade system:

a. force polluters to internalize an externality? b. lower transactions costs? c. give incentive to polluters to find new ways to reduce pollution? d. make future pollution reductions easy to implement?

Refer to the scenario above. People will earn a net benefit of ________ if the discount weight of the future benefit is 1/10

A) 950 utils B) 930 utils C) -600 utils D) -950 utils