The financial system coordinates investment and saving, which are important determinants of long-run real GDP

What is the difference between scarcity and poverty?

What will be an ideal response?

In the market for books, initially there are no taxes on books. Books are normal goods. The government introduces a tax of $4 a book and, at the same time, people's income fall by $4,000 a year

Following these two changes, the equilibrium quantity of books A) decreases. B) increases. C) remains unchanged. D) either increases or decreases. We cannot say which.