Suppose that financial market participants now expect a future tax increase in one year. Also assume that the yield curve is initially upward sloping. Given this information, we would expect which of the following to occur?

The figure above shows the production possibilities frontier for a country. If the country is producing at point D, then the

A) resources are being used efficiently. B) technology associated with producing SUVs and compact cars is advancing. C) resources are not being used efficiently and/or are unemployed. D) production of SUVs and compact cars is maximized. E) None of the above answers is correct because it is not possible to produce at point D.

Refer to the figure above. The market price of Good Y is ________

A) $10 B) $17 C) $22 D) $20