Author Question: In the short run, when the Fed increases the quantity of money A) bond prices rise and the ... (Read 20 times)

justinmsk · **on:** Jun 29, 2018

In the short run, when the Fed increases the quantity of money

A) bond prices rise and the interest rate falls.
B) bond prices fall and the interest rate rises.
C) the demand for money increases.
D) the supply of money curve shifts leftward.

Question 2

Consider the market for purple magic markers. The demand for purple magic markers is perfectly elastic and the supply curve is upward sloping.

If sellers of purple magic markers are taxed 1 per marker, how will the tax be divided between the buyer and seller? A) The sellers will pay the entire tax.
B) The buyers will pay the entire tax.
C) The tax will be evenly divided between the sellers and buyers.
D) More information is needed to determine how the tax is split.