Refer to the graph below, where Sd and Dd are the domestic supply and demand curves for a product. The world price of the product is $6. If this market were closed to international trade, the total revenue that would go to domestic producers would be:
A. $600, but only $240 if the domestic market were open to international trade
B. $600, but only $120 if the domestic market were open to international trade
C. $500, but only $240 if the domestic market were open to international trade
D. $240, but only $120 if the domestic market were open to international trade
B. $600, but only $120 if the domestic market were open to international trade
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Suppose that your marginal federal income tax rate is 30%, the sum of your marginal state and local tax rates is 5%, and the yield on thirty-year U.S. Treasury bonds is 10%
You would be indifferent between buying a thirty-year Treasury bond and buying a thirty-year municipal bond issued within your state (ignoring differences in liquidity, risk, and costs of information) if the municipal bond has a yield of A) 6.5%. B) 7.0%. C) 9.5%. D) 10.0%.
Assume that the price levels in two countries are constant. In this situation, we know that
A) neither the real nor the nominal exchange rate can change. B) the real exchange rate can change, while the nominal exchange rate is constant. C) the nominal exchange rate can change, while the real exchange rate is constant. D) the real and nominal exchange rate must move together, changing by the same percentage. E) the nominal exchange rate will fluctuate more widely than the real exchange rate.