Refer to the scenario above. Based on the given information, we can conclude that the market for used cars has ________

Which of the following would be expected if the tariff on foreign-produced automobiles were increased?

a. The domestic price of automobiles would fall. b. The supply of foreign automobiles to the domestic market would decline, causing auto prices to rise. c. The number of unemployed workers in the domestic automobile industry would rise. d. The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.

An investment tax credit will lead to

a. a lower equilibrium interest rate in equilibrium b. a decrease in household consumption spending in equilibrium c. slower economic growth d. lower equilibrium investment in physical capital e. a increase in household consumption spending