When a tax is imposed on an item, it can generally be said that the incidence of the tax is
a. entirely on the buyer.
b. entirely on the seller.
c. on both the buyer and seller.
d. not determined in this manner.
c
Economics
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Based on the model of the money market, when real income decreases, the equilibrium interest rate should
A) stay the same. B) increase. C) decrease. D) increase to the same extent that the supply of money increases.
Economics
Investment depends on the ________ interest rate because higher inflation will ________ the value of the dollars with which the firm will repay the loan.
A. real; increase B. nominal; increase C. real; decrease D. nominal; decrease
Economics