A rise in the real interest rate r
a. creates income and substitution effects that reduce C0.
b. creates income effects that reduce C0, substitution effects that increase C0.
c. creates income effects that increase C0, substitution effects that reduce C0.
d. creates income and substitution effects that increase C0.
c
Economics
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A flat tax which does allow deductions for investment spending is a type of
A) investment tax. B) excise tax. C) luxury tax. D) consumption tax.
Economics
If the government implements a binding price ceiling on insulin, this will have all of the following effects on the market for insulin except
A) a decrease in economic surplus. B) a decrease in producer surplus. C) an increase in deadweight loss. D) a more efficient equilibrium.
Economics