Describe the market effects of a carbon tax.

What will be an ideal response?


A carbon tax will shift the supply curve of the taxed good to the left, leading to increased price and reduced quantity.

Economics

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As a bank's assets become less risky, its

A) risk-based capital ratio rises. B) risk-based capital ratio falls. C) leverage ratio rises. D) leverage ratio falls.

Economics

The actual time length of the short run is determined by when diminishing marginal returns start

Indicate whether the statement is true or false

Economics

At any given price level, which of the following fiscal policies will decrease real GDP demanded, other things constant?

a. Increase in fiscal spending on infrastructure b. Increase in net taxes c. Increase in transfer payments d. Increase in money supply

Economics

Alan Greenspan argued that a low, stable inflation rate was the best way to achieve

A. low unemployment. B. low interest rates. C. low, stable oil prices. D. strong economic growth.

Economics