If the Bank of Canada buys government securities from the chartered banks, which of the following transactions take place?

Illustrate with a graph the effects of fiscal policy when exchange rates are fixed

What will be an ideal response?

The graph shown demonstrates a tax on buyers. Which of the following can be said about the effect of this tax?

A. The tax creates a shortage, and rationing must occur.
B. The tax creates a surplus, and the government must buy the excess.
C. The tax creates a shortage, and the government must regulate the market.
D. None of these is true