Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. The yield on bond A is approximately

A . What effect will a tax on cigarettes have on the consumption of cigarettes and on the wallets of smokers who are addicted to cigarettes? b. What effect will a tax on cigarettes have on the decision of teenagers to smoke? c. Describe the cross elasticity between cigarettes and the price of a Nicoderm patch, which is used to fight the craving for nicotine

"If Congress cuts income taxes, demand for output is likely to increase" is a ________ statement about ________ policy.

A. positive; monetary B. normative; fiscal C. normative; monetary D. positive; fiscal