The "interest rate effect" can be described as an increase in the price level that raises the interest rate and chokes off

A) investment and consumption spending.
B) government spending.
C) government spending and unplanned investment.
D) net exports.


A

Economics

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If the government wants to raise tax revenue and shift most of the tax burden to the sellers, it would impose a tax on a good with a:

a. steep (inelastic) demand curve and steep (inelastic) demand curve. b. steep (inelastic) demand curve and a flat (elastic) supply curve. c. flat (elastic) demand curve and a steep (inelastic) supply curve. d. flat (elastic) demand curve and a flat (elastic) supply curve.

Economics

When a price ceiling is set below the equilibrium price,

a. the quantity demanded will exceed quantity supplied. b. the quantity supplied will exceed the quantity demanded. c. the quantity supplied will equal the quantity demanded. d. the equilibrium price will fall.

Economics

The price elasticity of supply for toys is 0.36, so that a 1 percent increase in price would generate a

a. 0.36 percent increase in quantity supplied b. 3.60 percent increase in quantity supplied c. 0.36 percent decrease in quantity supplied d. 3.60 percent decrease in quantity supplied e. 1.36 percent increase in quantity supplied

Economics

Explain how the prices of related goods also affect demand

Please provide the best answer for the statement.

Economics