Open-market operations have their initial effect on bank

To fully understand how taxes affect economic well-being, we must

a. assume that economic well-being is not affected if all tax revenue is spent on goods and services for the people who are being taxed. b. compare the taxes raised in the United States with those raised in other countries, especially France. c. compare the reduced welfare of buyers and sellers to the amount of revenue the government raises. d. take into account the fact that almost all taxes reduce the welfare of buyers, increase the welfare of sellers, and raise revenue for the government.

The demand for dollars will increase when

A) real interest rates in the United States fall. B) U.S. labor productivity increases relative to the world. C) the world is perceived as more stable than it used to be. D) U.S. residents develop a taste for more imported products.