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According to the Hotelling Principle, the Price of a Nonrenewable

Question 65

Multiple Choice

According to the Hotelling Principle, the price of a nonrenewable resource is expected to


A) rise at a rate higher than the interest rate.
B) rise at a rate lower than the interest rate.
C) rise at a rate equal to the interest rate.
D) fall at a rate equal to the interest rate.

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