This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain how a consumption tax could lead to a decrease in real interest ... (Read 30 times)

DyllonKazuo

  • Hero Member
  • *****
  • Posts: 565
on: Jun 30, 2018
Explain how a consumption tax could lead to a decrease in real interest rates.

Question 2

Assume that the supply curve for tomatoes is upward sloping. If the price per pound increases from 0.99 to 1.89, a greater quantity of tomatoes will be supplied to the market.
 a. True
  b. False
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

meryzewe

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 30, 2018
Answer to Question 1

A tax on consumption would discourage individuals from making purchases. As a result, these individuals would be saving more. That would lead to an increase in the supply of loanable funds which would lead to a decrease in real interest rates.

Answer to Question 2

True


DyllonKazuo

  • Member
  • Posts: 565
Reply 2 on: Jun 30, 2018
Gracias!

irishcancer18

  • Member
  • Posts: 310
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Political parties vs interest groups Political parties vs interest groups
The world has been horrified recently at a U.S. Congress so polarized and paralyzed that it cannot p The world has been horrified recently at a U.S. Congress so polarized and paralyzed that it cannot p
Sensor and Lead Placement and Marking Codes Sensor and Lead Placement and Marking Codes
How to calculate compound interest (Part 2) How to calculate compound interest (Part 2)
How to calculate credit card interest when the interest is compounded How to calculate credit card interest when the interest is compounded
Decrease in mean haplotype heterozygosity Decrease in mean haplotype heterozygosity
Video: Electrocardiogram Examination

For a complete list of videos, visit our video library