A consumer values a car at $30,000 and a producer values the same car at $20,000 . What amount of tax will result in unconsummated transaction?

Suppose that there is a negative aggregate demand shock and the central bank commits to an inflation rate target. But if the commitment is not credible, then

A) the public's expected inflation will remain unchanged. B) the short-run aggregate supply curve will rise. C) economic contraction will be worse. D) all of the above. E) both B and C.

If U.S. demand for imports increases it would be expected that the value of the dollar in international currency markets would tend to

A. increase. B. change in a manner that cannot be determined without additional information concerning the direction of the shifts in the demand for and supply of dollars. C. decline. D. remain unchanged.