Estimating Damages from Cumulative Pollutants Is Complicated Because

question 14

Multiple Choice

Estimating damages from cumulative pollutants is complicated because

• A)there is a lack of cause and effect associated with the current emissions and total damages.
• B)the intertemporal dimension makes it more difficult to get people to focus on the damages associated with today's emissions.
• C)people typically discount the effects of future damage.
• D)all of the above

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Definitions:

Open Market Operations

Activities conducted by central banks to buy or sell government securities in the open market to control the money supply and interest rates.

Money Supply Control

The regulation of the amount of money in circulation by a central authority, typically a country’s central bank, to achieve economic objectives.

Open Market Operations

The buying and selling of government securities by a central bank in order to control the money supply and interest rates in the economy.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the Federal Reserve's discount window.