Assume that the market for consumer gasoline is perfectly ...

[SAVANNAHHOOPER23]

Assume that the market for consumer gasoline is perfectly competitive. When one additional seller (gas station) enters the market,
 
  A) then at least one other seller must exit the market.
  B) the price of gasoline increases.
  C) the price of gasoline is left unaffected.
  D) the price of gasoline decreases.
  E) None of the above is correct.

Question 2

Ricardian equivalence is the proposition that
 
  A) government expenditure should only be financed by taxes.
  B) it does not matter whether government expenditure is financed by creating new money or issuing debt.
  C) government expenditure should only be financed by issuing new debt.
  D) it does not matter whether government expenditure is financed by taxes or debt.

[meltdown117]

Answer to Question 1

C

Answer to Question 2

D