An expected tax increase will tend to cause
A) an increase in stock prices.
B) a reduction in stock prices.
C) no change in stock prices.
D) an ambiguous effect on stock prices.
C
Economics
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Comment on the following statement: "A firm's demand for labor can be affected by the availability of other inputs."
What will be an ideal response?
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If the Fed responded to an adverse supply shock by increasing the growth rate of the money supply and maintained the higher growth rate, what would eventually happen to the short-run Phillips curve? Why?
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