If the effective rate of protection is greater than the nominal rate of protection, there must be tariffs on intermediate products
Indicate whether the statement is true or false
FALSE
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When the Fed changes the quantity of money, there is an immediate effect on
A) the inflation rate but not the price level. B) the nominal interest rate. C) real GDP. D) the price level and the inflation rate. E) the price level but not the inflation rate.
When the law grants someone control of a resource, that control is referred to as a property right
Indicate whether the statement is true or false
Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, the producer's burden of the tax
A) is Pa - Pd under either supply curve. B) is Pa - Pd if the supply curve is S0 and Pb - Pe if the supply curve is S1. C) is Pc - Pd if the supply curve is S0 and Pc - Pe if the supply curve is S1. D) is Pb - Pe under either supply curve.
If the demand for a good falls when income falls, then the good is called an inferior good
a. True b. False Indicate whether the statement is true or false