If a tax is levied on the buyers of a product, then the demand curve will
a. not shift.
b. shift down.
c. shift up.
d. become flatter.
b
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Legal ceilings on the rate of interest charged to individuals
A) guarantee credit is allocated according to need rather than ability to pay. B) make it easier for people with poor credit ratings to obtain loans. C) reduce the probability corporations will obtain scarce credit by bidding funds away from consumers. D) accomplish all of the above. E) accomplish none of the above.
If a small country imposes a tariff, then
A) the producers must suffer a loss. B) the consumers must suffer a loss. C) the government revenue must suffer a loss. D) the demand curve must shift to the left. E) the world price on that item will shift.
If the Fed wishes to decrease the money supply it can:
A. Raise the discount rate. B. Buy bonds on the open market. C. Decrease the required reserve ratio. D. Decrease the federal funds rate.
Which of the following statements best describes the role played by prices in a command economy such as the former Soviet Union?
A. Prices were used to allocate resources. B. Prices played the same role as in a market economy. C. Prices were used to ration final goods and services but not to allocate resources. D. Prices were not used at all.