The Coase theorem suggests that taxes should be enacted to alleviate the effects of negative externalities

Refer to the Article Summary. All else equal, a depreciation of the Chinese yuan relative to a currency such as the U.S. dollar should ________ the current account balance in China and therefore ________ the financial account balance in China

A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase

The IS curve shifts to the left when ________

A) autonomous consumption increases B) taxes increase C) autonomous investment increases D) all of the above E) none of the above