As a result of the tax, consumption of this good will decline by
A. 5 units.
B. 10 units.
C. 15 units.
D. quantity consumed will not decline at all.
D. quantity consumed will not decline at all.
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How would the Fed's reduction of the reserve ratio requirement affect the money supply?
What will be an ideal response?
The effective operation of the U.S. economic system depends upon
A) high profits. B) low profits. C) stable profits. D) the expectation of profits.
How can banks measure interest-rate risk?
What will be an ideal response?
When government spending flows to areas where resources are already fully employed,
a. the additional spending will stimulate strong growth in those areas. b. aggregate demand will place downward pressure on the general level of prices. c. the coordination problem accompanying the composition of aggregate demand is likely to improve. d. the coordination problem accompanying the composition of aggregate demand is likely to worsen.