According to the interest rate effect, as the price level rises,:
A. people feel poorer and buy less.
B. United States products become more expensive and foreigners buy less U.S. goods.
C. interest rates fall, and people buy less.
D. interest rates rise, and people buy less.
Answer: D
Economics
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Which of the following does NOT affect the position of the DD curve?
A) monetary policy B) government spending C) taxes D) export demand E) price levels
Economics
Tom walks Bethany's dog once a day for $50 per week. Bethany values this service at $60 per week, while the opportunity cost of Tom's time is $30 per week. The government places a tax of $35 per week on dog walkers. After the tax, what is the total surplus?
a. $50 b. $30 c. $25 d. $0
Economics