In order for bubbles to occur, expectations of a price increase usually_______demand and ______supply

The open economy effect suggests that

A) a decrease in domestic price level will cause foreign residents to buy more domestic goods, increasing net exports. B) a rise in domestic price level will cause domestic residents to buy fewer imported goods. C) a rise in domestic price level will cause foreign residents to buy more domestic goods. D) a decrease in domestic price level will cause foreign residents to buy fewer domestic goods, increasing net exports.

A Pigovian tax is a tax:

A. that increases total surplus in a market. B. meant to counter the effect of a negative externality. C. that increases efficiency in a market. D. All of these statements are true.