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Author Question: Raising taxes on interest and dividend income will increase the level of investment and economic ... (Read 92 times)

joe

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on: Jun 29, 2018
Raising taxes on interest and dividend income will increase the level of investment and economic growth.
 
  Indicate whether the statement is true or false

Question 2

Suppose the demand for bananas increases. Explain how the price of bananas adjusts after the increase in demand.
 
  What will be an ideal response?


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cici

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Reply #1 on: Jun 29, 2018
Answer to Question 1

FALSE

Answer to Question 2

If the demand for bananas rises, a shortage is created at the original equilibrium price. This means there will be upward pressure on price. As price rises, quantity demanded falls and quantity supplied increases until the two are equal.


joe

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

isabelt_18

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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