Other things the same, the aggregate quantity of goods demanded in the U.S. increases if
a. real wealth rises.
b. the interest rate rises.
c. the dollar appreciates.
d. All of the above are correct.
a
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When the government uses a cap-and-trade approach in dealing with pollution, it
A) uses taxes in order to internalize the externalities caused by the pollution. B) imposes quantitative limits on the amount of pollution firms are allowed to generate. C) uses subsidies to encourage firms to use new technology that reduces pollution. D) distributes information to consumers and producers on how to reduce pollution.
You are given the following risky cash flows and certainty equivalent factors for a four-year project:
Certainty Period Cash Flow Equivalent Factor 1 $2,500 .95 2 3,000 .92 3 4,000 .88 4 3,000 .84 The initial investment for this project is $8,000, and the risk-free interest rate is 6%. Calculate the net present value of the project.