Pigovian taxes are preferred over regulations to deal with pollution because Pigovian taxes ()
A. reduce pollution at a lower cost to society.
B. raise revenue and reduce pollution simultaneously, although efficiency is reduced.
C. obtain faster results than regulations.
D. allow for an accurate monitoring of pollution levels.
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Which of the following is included in the supply of dollars in the market for foreign-currency exchange? ()
A retail outlet in Afghanistan wants to buy watches from a US manufacturer.
B. A US bank loans dollars to Blair, a US resident, who wants to purchase a new car made in the United States.
C. A US based mutual fund wants to purchase stocks issued by a Polish company.
D. A firm in Kenya wants to buy wheat from a US firm.
A country has $60 million of saving and domestic investment of $40 million. Net exports are ()
A. $20 million.
B. -$20 million.
C. $100 million.
D. -$100 million.
In the US a candy bar costs 50 cents. The nominal exchange rate is 6 Chinese yuan per dollar. If the real exchange rate is 0.60, what is the price of a candy bar in China ()
A. 7.2 yuan
B. 6 yuan
C. 5 yuan
D. 3.6 yuan
The quantity of dollars demanded and supplied in the foreign-currency exchange market depends on ()
A. the real exchange rate and the real interest rate respectively.
B. the real interest rate and the real exchange rate respectively.
C. the real exchange rate.
D. the real interest rate.