Which of the following would cause the aggregate demand curve to decrease, ceteris paribus?
a) An increase in income taxes.
b) An increase in the value of the stock market.
c) Strong performance of foreign economies.
d) A decrease in interest rates.
Ans: a) An increase in income taxes.
Economics
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Suppose two neighbors share a park. One neighbor, Al, leaves trash in the park. This bothers the other neighbor, Bert. According to Coase's theorem, the optimal level of trash in the park can be achieved if
A) Al is fined by the government. B) Al has the right to leave trash and Bert cannot do anything about it. C) Al has the right to leave trash and Bert can pay him to limit his dumping. D) Bert moves.
Economics