Trade-offs are involved in most policy decisions

Harvey, a U.S. taxpayer, purchased 10 shares of MVC stock for $100 per share; one year later he sold the 10 shares for $130 a share. Over the year, the price level increased from 140.0 to 147.0 . What is Harvey's before-tax real capital gain?

a. $1,300 - $1,000(1.05) and this is the gain he is to report on his income tax b. $1,300 - $1,000(1.05) but he is to report a $300 gain on his income tax c. $1,300 - $1,000(1.07) and this is the gain he is to report on his income tax d. $1,300 - $1,000(1.07) but he is to report a $300 gain on his income tax

Which of the following would cause the supply of dollars curve in the United States to shift to the right?

A. Japanese imports become less popular. B. The value of the dollar falls. C. The supply of dollars decreases. D. Japanese imports became more popular.