As opportunity cost of holding money increases, people can
A) do nothing.
B) increase the demand for money but not the quantity of money they hold.
C) find a better job.
D) try to maximize marginal benefit.
E) seek substitutes for money.
E
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A tax levied on purchases of a particular good or service
A) is illegal because it is discriminatory. B) always leads to a reduction in total tax revenues. C) always leads to an increase in total tax revenues. D) is an excise tax.
Suppose that India has a government budget surplus, and then goes into deficit. This change would
a. increase India's national saving and shift its supply of loanable funds left. b. increase India's national saving and shift its demand for loanable funds right. c. decrease India's national saving and shift its supply of loanable funds left. d. decrease India's national saving and shift its demand for loanable funds right.