An increase in the effective corporate tax rate due to increased inflation results in
a. a upward shift of the investment schedule.
b. a downward shift of the investment schedule.
c. no shift of the investment schedule.
d. a rightward shift of the saving schedule.
B
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Which of the following increases when the Fed makes open-market sales?
a. currency and reserves b. currency but not reserves c. reserves but not currency d. neither currency nor reserves
(Consider This) According to the Coase theorem:
A. government should levy excise taxes on firms that generate spillover or external costs. B. taxes should be levied such that they change private behavior as little as possible. C. private individuals can often negotiate their own resolution of externality problems, without the need for government intervention. D. private firms should not provide public goods.