An increase in real income ___ the demand for real money balances and thereby causes a ___ in the nominal rate of interest.
a. lowers; rise
b. lowers; fall
c. raises; rise
d. raises; fall
Ans: c. raises; rise
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When the tax rate is constant when a person's income rises, the tax is a:
a. regressive tax. b. poll tax. c. progressive tax. d. constant tax. e. proportional tax.
The dominant firm in an oligopoly is the firm that ______.
a. produces a large portion of the total output b. undercuts the prices of its competitors c. provides an entry incentive to other firms d. practices perfect competition
Which of the following is a determinant of supply?
A. Number of buyers. B. The prices of the factors of production. C. Consumers' income. D. Consumer tastes or preferences.
Figure 34-10
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Figure 34-10 shows the effect on the market for disk drives of a(n)
A. quota. B. tariff. C. export subsidy. D. import subsidy. E. export tax.