Suppose a tax equal to the value of the external cost of producing car batteries is imposed by government on all car battery manufacturers. All of the following will result from the tax except

A) an increase in demand for car batteries.
B) a decrease in the market supply of car batteries.
C) an increase in the equilibrium price of car batteries.
D) a decrease in the equilibrium quantity of car batteries produced and consumed.


A

Economics

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Indicate whether the statement is true or false

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If short-term and long-term interest rates are currently equal and the Fed contracts the money supply, the yield curve would be expected to:

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Economics