Taxes create deadweight losses because they

a. reduce costs for firms.
b. distort incentives.
c. cause prices to decrease.
d. create revenue for the government.

b

Economics

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The higher the federal funds rate, the ________ the opportunity cost of holding reserves, which ________ the incentive to economize on reserves

A) lower; increases B) lower; decreases C) higher; decreases D) lower; does not change E) higher; increases

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The way in which growth occurs affects the pattern of trade of a country

Indicate whether the statement is true or false

Economics