Refer to the figure above. If the pre-tax equilibrium price of Good X was $3 and the price that consumers need to pay after the imposition of a per-unit tax of $3 is $5, the tax incidence on consumers is approximately ________
A) 50%
B) 2%
C) 3%
D) 67%
D
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Reserve requirements are regulations concerning
a. the amount of deposits banks are allowed to accept. b. the amount of reserves banks must hold against deposits. c. the total amount of loans banks are allowed to make. d. the interest rate at which banks can borrow from the Fed. e. the number of open market transactions the Fed can perform.
When demand and supply both decrease, equilibrium price will _________ and equilibrium quantity will _________.
A. increase; decrease B. decrease; decrease C. remain the same; decrease D. Any of these answers are possible
Over the last decade, foreigners have been exercising
A. a declining influence over interest rates in the United States. B. an increasing influence over interest rates in the United States. C. about the same influence over interest rates in the United States.
In any case where there is a positive externality, forming a government agency to solve the problem rarely results in an efficient outcome.
Answer the following statement true (T) or false (F)