If Congress decides to reduce the tax per pack paid by sellers of cigarettes, other things being equal, the price of cigarettes will fall. This fall in prices can be attributed a(n):
a. upward movement along the supply curve for cigarettes.
b. rightward shift of the supply curve for cigarettes.
c. downward movement along the demand curve for cigarettes.
d. leftward shift of the supply curve for cigarettes.
b
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If a company pays a dividend of $5 to be received one year from now, dividends are expected to grow at a rate of 8 percent per year for the indefinite future, and the interest rate is 14 percent, the price of the company's stock should be ________
per share. A) $8.00 B) $83.33 C) $227.27 D) $610.00
The U.S. dollar exchange rate, e, where e is the nominal exchange rate expressed as Japanese yen per U.S. dollar, will appreciate when:
A. U.S. consumers increase their preference for Japanese cars. B. the U.S. Federal Reserve eases monetary policy. C. the Bank of Japan eases monetary policy. D. the Bank of Japan tightens monetary policy.