The classical dichotomy says that two groups of variables are affected by different forces. What are these two groups of variables?

Flat slope of yield curve so expect _______ interest rates

Fill in the blank(s) with the appropriate word(s).

The demand curve for pizza is downward sloping and the supply curve is upward sloping. If the government imposes a $2 tax on a pizza, ________ the tax

A) only consumers pay B) only producers pay C) both producers and consumers pay part of D) neither producers nor consumers pay part of E) the government pays