An increase in the effective tax rate on capital causes the real interest rate to ________ and the price level to ________ in general equilibrium.

A. rise; rise
B. fall; rise
C. fall; fall
D. rise; fall

Answer: C

Economics

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A country seeking to increase tourism will probably increase the production of

a. tractors b. hotels c. nuclear weapons d. artificial bologna

Economics

By itself, an increase in the price of oil shifts the

A) aggregate supply curve rightward and does not shift the aggregate demand curve. B) aggregate demand curve rightward and does not shift the aggregate supply curve. C) aggregate demand curve rightward and shifts the potential GDP line rightward. D) aggregate supply curve leftward and does not shift the aggregate demand curve. E) aggregate demand curve leftward and does not shift the aggregate supply curve.

Economics