Assume that production from a automobile manufacturer caused acid rain. If the government imposed a tax on the manufacturer equal to the cost of the acid rain, the government's action would

A) externalize the externality.
B) eliminate all acid rain.
C) force the manufacturer to move production to another location.
D) internalize the externality.

D

Economics

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The point at which the aggregate expenditure line intersects the vertical axis is determined by the marginal propensity to consume and real interest rate

a. True b. False Indicate whether the statement is true or false

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