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According to the Hotelling Rule,the Price of an Exhaustible Natural

Question 6

Multiple Choice

According to the Hotelling Rule,the price of an exhaustible natural resource will


A) be very volatile
B) rise at the rate of interest
C) be too low and result in to being exploited too quickly
D) rise to ensure that the resource never runs out.
E) Always be at the backstop price where rival sources are economic

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