Under a gold standard, a balance of payments deficit automatically

Comparing Tobin's model of the speculative demand for money with Keynesian speculative demand

A) both models imply that individuals hold only money or only bonds. B) the Keynesian model implies individuals diversify their asset holdings, while the Tobin model predicts that individuals hold only money or only bonds. C) the Tobin model implies individuals diversify their asset holdings, while the Keynesian model predicts that individuals hold only money or only bonds. D) both models imply that individuals diversify their asset holdings.

Suppose that the federal government levies a 50 cent excise tax on gasoline and that the demand for gasoline is highly inelastic while the supply is highly elastic. Under these circumstances, the burden of the tax

a. will fall primarily on producers. b. will fall primarily on consumers. c. will be split equally between consumers and producers. d. cannot be determined because the burden of a tax is not influenced by the elasticities of supply and demand.