Author Question: Which of the following is not a reason why marketable permits may fail to achieve efficiency? a. ... (Read 120 times)

AEWBW · **on:** Jun 30, 2018

Which of the following is not a reason why marketable permits may fail to achieve efficiency?
a. Some firms can reduce emissions at a lower cost than other firms.
b. A market with a small number of buyers and sellers.
c. Imperfect information exists on the value of a permit.
d. There are concerns about the value of permits in the future.

Question 2

In the money and credit expansion process, the total change in checkable deposits is equal to the initial change in excess reserves _____.
a. multiplied by the required reserve ratio
b. plus the change in required reserves
c. divided by the reciprocal of the required reserve ratio
d. multiplied by the reciprocal of the required reserve ratio
e. divided by the change in required reserves