When the Fed reduces the real interest rate, which of the following does NOT increase?

If Veronica withdraws $1,500 from her checking account and holds it as currency, then M1 will ________ and M2 will ________

A) increase; decrease B) increase; not change C) not change; decrease D) not change; not change

Assume a unit tax of $4 is placed on suppliers. They are able to pass along some of the tax to suppliers as evidenced by prices rising from $5 per unit to $7 per unit. Output declines from 10 units to 8 units

What is the ratio of the demander's share of the tax burden to the suppliers? a. 2.5 b. 2.0 c. 1.5 d. 1.0