There is a negative relationship between the real rate of interest and investment spending

The Grinch is now the mayor of your hometown, and he's still trying to steal Christmas. On the day after Thanksgiving, he announces a $25 tax on fresh Christmas trees. Tree farmers are angry to hear this because they have already delivered this season's

freshly cut trees to the tree lots in your town. You hear your neighbors planning to buy an artificial tree, and your family decides to drive to the next town to buy a tree. a . Who will bear the biggest share of the burden the first Christmas season this tax is in effect? Why? b. Will your answer change for subsequent Christmases? Why?

An economy produces two goods, x and y. A year ago the price of x was $4 and the price of y was $6 . Today the price of x is $8 and the price of y is $10 . What happened to the nominal and the real value of good x? What happened to the nominal and real value of good y?