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    Economics Principles and Policy Study Set 1
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    Exam 16: Externalities, the Environment, and Natural Resources
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    If Coal Prices Are Rising Faster Than the Rate of Interest
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If Coal Prices Are Rising Faster Than the Rate of Interest

Question 73

Question 73

Multiple Choice

If coal prices are rising faster than the rate of interest, then


A) investors should buy coal instead of bonds.
B) investors should buy bonds instead of coal.
C) coal prices should be expected to fall.
D) bond prices should be expected to rise.

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