How would the market for coffee be affected if the government charged an excise tax of $1.00 on each unit of coffee sold?
A) There would be a shortage of coffee.
B) The demand for coffee would increase.
C) The demand for coffee would decrease.
D) The supply curve would shift up vertically by $1.00.
D
Economics
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An example of a shortage is limited amounts of
What will be an ideal response?
Economics
In the best case scenario, what is the Fed's response to a negative demand shock?
A. The Fed will decrease the growth rate of the money supply to offset the negative demand shock. B. The Fed will increase the growth rate of the money supply to offset the negative demand shock. C. The Fed will increase government spending to offset the negative demand shock. D. The Fed will decrease government spending to offset the negative demand shock.
Economics