Which of the Following Are Accurate Findings of Recent Studies

question 42

Multiple Choice

Which of the following are accurate findings of recent studies about the effectiveness of intervention activities?

• A)Intervention is often effective for two weeks or less in reversing the direction of the trend of the exchange rate or reducing the speed of the trend.
• B)The effectiveness of the intervention usually continues past the initial two-week period and can be observed in the trend for months to come.
• C)Smaller interventions are usually more successful than larger interventions.
• D)The interventions are usually more effective when exercised by individual monetary authorities rather than by two or more authorities intervening jointly.

Calculate the optimal Pigouvian tax per unit of pollution based on marginal social costs and benefits.

Evaluate the efficacy of emissions taxes and their potential consequences on pollution levels.

Understand the basic concept and purpose of emissions taxes and their role in reducing pollution.

Analyze the effect of setting emissions taxes lower or higher than the optimal level on pollution.

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Definitions:

Surplus

The situation in which the quantity of goods produced exceeds the quantity demanded, often leading to a drop in prices.

Supply Increases

Refers to a situation where the quantity of a good or service that producers are willing and able to sell at a given price level rises, often leading to a decrease in prices if demand remains constant.

Equilibrium Price

The cost at which the amount of a product or service being sought after matches the amount being offered, resulting in a stable market.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity demanded at a particular price.