In what type of analysis will an increase in the tax rate always lead to an increase in tax revenues?

Refer to Figure 10.3. A positive demand shock with no change in the real interest rate is best represented by ________ in panel (a) and ________ in panel (b)

A) a shift from AE3 to AE2; a shift from IS2 to IS1 B) a shift from AE2 to AE3; a shift from IS1 to IS2 C) a shift from AE1 to AE2; a movement from point A to point B D) a shift from AE1 to AE3; a movement from point A to point C

Chelsea wants to start her own Christmas ornament business. She can purchase a suitable factory that costs $100,000 . Chelsea currently has $150,000 in the bank earning 3 percent interest per year. Suppose Chelsea purchases the factory using $50,000 of her own money and $50,000 borrowed from a bank at an interest rate of 6 percent. What is Chelsea's annual opportunity cost of purchasing the

factory? a. $2,000 b. $3,000 c. $4,500 d. $5,000