Assume that you pay $10,000 of tax on a taxable income of $50,000. If your taxable income were $150,000, your tax payment would be $25,000. This suggests the tax is:

At higher nominal rates of interest, the demand for real balances is:

a. higher because savers can earn higher returns. b. lower because the opportunity cost of holding those funds is higher. c. invariant with respect to the nominal interest rate. d. inversely related to the price level.

A price ceiling established below the market clearing price will usually cause

A. no change in the market clearing price. B. an excess supply. C. nonprice rationing. D. a decrease in the market clearing price.