If the government imposes a pollution tax on gasoline refineries:
a. the supply of gasoline will shift to the right.
b. the demand for gasoline will shift to the right.
c. the supply of gasoline will shift to the left
d. the demand for gasoline will shift to the left.
c
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Many individuals are reluctant to buy common stock is that as owners of a corporation they have unlimited liability for the debts of the business.
Answer the following statement true (T) or false (F)
Show graphically and explain why targeting an interest rate is preferable when money demand is unstable and the IS curve is stable
What will be an ideal response?
When the money market is drawn with the value of money on the vertical axis, if the value of money is above the equilibrium level,
a. the price level will rise. b. the value of money will rise. c. money demand will shift leftward. d. money demand will shift rightward.
When disposable income is 3500, induced consumption is
A. -500.
B. 0.
C. 500.
D. 750.