Suppose last year Moe faced a 25% marginal tax rate. This year tax rates increased and now Moe faces a 30% marginal tax rate. Moe may choose to work fewer hours this year because:

Refer to the figure above. In equilibrium, ________

A) Firm 1 will follow Strategy Y, and Firm 2 will follow Strategy X B) Firm 1 will follow Strategy X, and Firm 2 will follow Strategy Y C) both firms will follow Strategy X D) both firms will follow Strategy Y

Which of the following combinations is plausible for a nation's balance of payments? (All numbers in billions.)

A) current account = 10, capital account = 40, official reserve transaction account = 50 B) current account = 40, capital account = 20, official reserve transaction account = -50 C) current account = 50, capital account = -30, official reserve transaction account = 20 D) current account = 30, capital account = -20, official reserve transaction account = -10