The graph shown demonstrates a tax on sellers. Which of the following can be said about the effect of this tax?
The graph shown demonstrates a tax on sellers. Which of the following can be said about the 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.
D. None of these is true.
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When households choose to hold money as a store of value, rather than holding assets such as certificates of deposit, stocks, and bonds, ________ demand for money results
A) liquidity B) asset C) transactions D) precautionary
Which of the following will increase the natural rate of interest?
A) An increase in the saving rate B) A decrease in inflationary expectations C) An increase in government spending D) A decrease in the money supply