To eliminate the inefficiency resulting from pollution that creates an external cost, the government can impose a pollution tax on producers that is equal to the

Which of the following is most likely to restore an economy to full employment, if it is operating below full employment due to a decrease in net exports?

A) Devaluation of the domestic currency B) A decrease in the demand for goods and services in the economy C) A decrease in investment in the economy D) An increase in the interest rate

When the U.S. dollar depreciates against the yen, the yen becomes ________ expensive and the U.S. exchange rate ________

A) more; rises B) less; rises C) more; falls D) less; falls