Elucidate why a system of marketable polution permits leads

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Q. Elucidate why a system of marketable poluution permits leads to less costly pollution abatement and a higher concentration of polluted areas tha a command - and control system

Analyze the effect of an increase in the foreign interest rate R* in the short run. Under which type of exchange rate is there a smaller effect on ouput- fixed or floating? Use the DD-AA model to explain your answer

 

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