An increase in taxes (when Ricardian equivalence doesn't hold) causes the real interest rate to ________ and the price level to ________ in general equilibrium.

A. rise; rise
B. rise; fall
C. fall; rise
D. fall; fall

Answer: D

Economics

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If money supply and money demand both increased:

a. nominal interest rates would increase and investment would increase b. nominal interest rates would increase and investment would decrease. c. nominal interest rates would decrease and investment would increase. d. the change in nominal interest rates and investment would be indeterminate.

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The enclosure movement in England in the 17th century represented an attempt to transform

a. a public good into a private good. b. a private good into a public good. c. a private good into a common resource. d. a common resource into a private good.

Economics