If savings does not depend upon the interest rate, then
a. the IS curve is vertical.
b. the IS curve is horizontal.
c. the LM curve is horizontal.
d. the IS curve is still downward sloping.
e. none of the above.
D
Economics
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According to the equation of exchange, if V = 10, P = 3, and Y = $50, then the money supply equals
A) $10. B) $15. C) $30. D) $150.
Economics
A tax equal to the external marginal cost of an activity yields the efficient level of production because the tax
A) achieves the competitive equilibrium. B) forces producers to face all costs of production including the external cost. C) ensures greater profits for the firm. D) eliminates all pollution.
Economics