The graph shown demonstrates a tax on sellers. How many fewer units are being sold due to the imposition of a tax on this market?

Suppose the economy is initially operating at point A in the above figure. Which of the following statements is TRUE?

A) An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the short run. B) An unexpected reduction in aggregate demand will cause the economy to move from point A to point C in the short run. C) An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the long run. D) none of the above

Which bond is likely to have higher interest rate due to a higher default risk?

a. A share of stock issued by Apple. b. A corporate bond issued by Apple. c. A junk bond. d. A U.S. government bond.