A tax on primary resource use would
a. Increase recycling rates and raise the costs of some products
b. Increase recycling rates and not affect product costs
c. Decrease recycling rates and raise the cost of some products
d. Decrease recycling rates and not affect product costs
e. Decrease recycling rates but the effect on prices is unknown
Ans: a. Increase recycling rates and raise the costs of some products
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Explain and show graphically how an increase in incomes in the United States will affect equilibrium in the foreign exchange market?
What will be an ideal response?
Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costs are called
A) differential actions. B) cash transactions. C) arbitrage. D) forward transactions.
The theory of portfolio choice indicates that factors affecting the demand for money include
A) income. B) nominal interest rate. C) liquidity of other assets. D) all the above.