Gasoline and bicycles are substitutes in consumption. Suppose we increase the federal gasoline tax to $1 per gallon. What are the initial changes that result from the tax as these markets adjust to a new general equilibrium?
A) Gasoline price rises, demand for bicycles shift s leftward.
B) Gasoline price rises, demand for bicycles shifts rightward.
C) Gasoline price rises, move downward along bicycle demand curve.
D) Gasoline price rises, move upward along bicycle demand curve.
B
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When the Fed adopts an expansionary monetary policy: a. the demand for investment curve shifts to the left
b. the demand for investment curve shifts to the right. c. there is a downward movement along the demand for investment curve. d. there is an upward movement along the demand for investment curve. e. there is no impact on the demand for investment curve.
Which of the following is not one of the general classifications of taxes?
A. Regressive. B. Progressive. C. Proportional. D. Gradual.