If the government removes a $1 tax on sellers of gasoline and imposes the same $1 tax on buyers of gasoline, then the price paid by buyers will

a. increase, and the price received by sellers will increase.
b. increase, and the price received by sellers will not change.
c. not change, and the price received by sellers will increase.
d. not change, and the price received by sellers will not change.

d

Economics

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Assume the economy is initially in equilibrium where potential GDP is less than real GDP

If the expected inflation rate, the term structure effect, and the default-risk premium are constant, ________ in the Fed's target short-term nominal interest rate will shift up the MP curve which will result in real GDP ________. A) an increase; falling B) an increase; rising C) a decrease; falling D) a decrease; rising

Economics

Which of the following institutions is the most important participant in foreign currency markets?

A) A retail customer B) A commercial bank C) A foreign exchange broker D) A central bank

Economics