An example of the command-and-control approach to environmental policy is:
a. allowing individuals to sue freon producers if CFC emissions exceed a government-set standard.
b. allowing coal producers to buy and sell permits to allow CFC emissions.
c. placing a tax on freon to reduce its use and the corresponding CFC emissions (which contribute to the ozone hole).
d. none of these.
Question 2
The immediate effect of a member bank's sale of U.S. government securities to the Fed is a(n):
a. increase in that bank's required reserves.
b. decrease in that bank's required reserves.
c. increase in that bank's excess reserves.
d. decrease in that bank's excess reserves.
e. decrease in the Fed's assets.
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