Marginal cost refers to the increase in cost attributable to hiring one more unit of labor, capital, or some other input

Which of the following statements best describes the impact of a higher interest rate?

a. A higher interest rate will attract an inflow of foreign financial capital and depreciate the exchange rate in response to the increase in demand for U.S. dollars by foreign investors and a decrease in supply of U.S. dollars. b. A higher interest rate will attract an inflow of foreign financial capital and appreciate the exchange rate in response to the increase in demand for U.S. dollars by foreign investors and an increase in supply of U.S. dollars. c. A higher interest rate will attract an inflow of foreign financial capital and appreciate the exchange rate in response to the increase in demand for U.S. dollars by foreign investors and a decrease in supply of U.S. dollars. d. A higher interest rate will attract an inflow of foreign financial capital and depreciate the exchange rate in response to the increase in demand for U.S. dollars by foreign investors and a increase in supply of U.S. dollars.

Refer to the figure below. Suppose the original before-tax demand curve for CD players is P = 100 - 2Q d . Suppose further that supply is P = 5 + 3Q s . Now suppose a $5 unit tax is imposed on consumers.

(A) What is the before-tax equilibrium price and quantity?
(B) What is the after-tax equilibrium price and quantity?
(C) How much tax revenue is raised?