Recall the Application. The idea regarding the relationship between tax rates and tax revenues proposed by Yu Juo is very similar to the idea proposed by economist

The price of cotton rises. What happens in the market for cotton shirts?

A) The equilibrium price falls and the equilibrium quantity rises. B) The equilibrium price rises and the equilibrium quantity falls. C) The equilibrium price and quantity rise. D) The equilibrium price and quantity fall.

When cash is deposited in a checkable-deposit account at a bank, there is a(n)

A. increase in the bank's liabilities. B. increase in the money supply M1. C. decrease in the money supply M1. D. increase in the bank's net worth.