Which Is an Example of a Negative Externality

question 83

Multiple Choice

Which is an example of a negative externality?

• A) automobile emissions
• B) a cut in pay
• C) a peace treaty
• D) brand proliferation
• E) education

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Definitions:

Inflation Rate

The percentage increase in the general price level of goods and services in an economy over a specified period.

Money Supply

Money Supply denotes the total volume of money available in the economy, including cash, coins, and balances held in checking and savings accounts.

Value of Money

Refers to the purchasing power of money, or how much goods and services a unit of money can buy.

Real Interest Rates

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the real yield to the lender or investor.