A tax imposed on the buyers of a good will lower the
a. price paid by buyers and lower the equilibrium quantity.
b. price paid by buyers and raise the equilibrium quantity.
c. effective price received by sellers and lower the equilibrium quantity.
d. effective price received by sellers and raise the equilibrium quantity.
c
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Assuming all else equal, inflation can:
A) reduce the real interest rate, and increase the real wage rate. B) increase both the real interest rate and the real wage rate. C) increase the real interest rate, and reduce the real wage rate. D) reduce both the real interest rate and the real wage rate.
Which statement best describes the current account balance in the short run?
A) Monetary expansion lowers the current account balance. B) Monetary expansion keeps the current account balance the same. C) Fiscal expansion increases the current account balance. D) Fiscal expansion keeps the current account balance the same. E) Monetary expansion increases the current account balance.