Multiple Choice
Assume that the RBA is expected to respond to any event by keeping the interest rate constant (i.e., equal to its initial level) . An unexpected tax increase will cause:
A) stock prices to fall.
B) stock prices to rise.
C) no change in stock prices.
D) an ambiguous effect on stock prices.
E) stock prices fall only if goods prices fall.
Correct Answer:
Verified
Correct Answer:
Verified
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