Author Question: In the simple aggregate expenditure model, the slope of the aggregate expenditure line depends on: ... (Read 97 times)

jazziefee · **on:** Jun 30, 2018

In the simple aggregate expenditure model, the slope of the aggregate expenditure line depends on:
a. interest rates.
b. real gross domestic product.
c. the price level.
d. the marginal propensity to consume.
e. the marginal propensity to save.

Question 2

Tennessee emits sulfur dioxide that flows into North Carolina. In meeting sulfur emissions regulations, the Tennessee Valley Authority (TVA), which produces electricity, buys sulfur emission permits from Wyoming. The resulting hot spot problem is:
a. The citizens of Wyoming will experience higher sulfur emissions as a result of the emissions trading program.
b. The citizens of Wyoming will experience lower sulfur emissions as a result of the emissions trading program.
c. The citizens of Tennessee will pay more to reduce sulfur emissions than if the government used a command-and-control approach.
d. The citizens of North Carolina will suffer higher emissions as a result of the emissions trading program.