How much would the firm make in revenue if it chooses to sell only the high-end professional series?

An increase in taxes

a. reduces income by more than the total fall in consumption. b. reduces income by the same amount as the total fall in consumption. c. reduces income and consumption by the same amount as taxes fall. d. reduces income by the amount of the initial fall in consumption.

The basic idea of crowding out is that a budget:

A. surplus will cause the interest rate to go up. B. deficit will cause the interest rate to go up. C. deficit will cause the interest rate to go down. D. surplus will cause the interest rate to go down.