A tax on sellers:
A. causes equilibrium price and quantity to decrease.
B. shifts the demand curve vertically downwards by the amount of the tax, but does not affect the supply curve
C. shifts the supply curve vertically upwards by the amount of the tax, but does not affect the demand curve.
D. causes a shortage in the market.
C. shifts the supply curve vertically upwards by the amount of the tax, but does not affect the demand curve.
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Economists measure opportunity cost
A) as equal to the sum of all the sunk costs. B) only when it is on the margin. C) as the best thing given u
As the reserve ratio increases, the money multiplier
A. increases. B. decreases. C. does not change. D. None of the above is correct..
When more than one central bank attempts to shift the equilibrium exchange rate, we refer to this as:
a. sterilization. b. a currency crisis. c. coordinated intervention. d. an application of special drawing rights. e. a floating exchange rate system.
At one time, it was believed that the way for a nation to prosper was to export as much as possible while importing as little as possible. More money would flow into a country than out of a country. Is this really a sound economic strategy? What is the relationship between exports and imports?