Exhibit 19-6 ​

question 149

Multiple Choice

Exhibit 19-6
​

-Refer to Exhibit 19-6. Suppose the three equilibrium quantities are 700, 800, and 900, and the two equilibrium prices are $2.20 and $2.75. What is the tax revenue collected from the tax that shifted S₁ to S₂ when D₁ is the relevant demand curve?

• A)$440
• B)$600
• C)$800
• D)$900

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Definitions:

Foreign Currency Approach

A method in financial analysis or accounting that deals with the effects of exchange rates on foreign currency transactions and translations.

Swedish Krona

Sweden's recognized currency, abbreviated SEK.

Unbiased Forward Rates

Interest rates or currency exchange rates determined through analysis that are unaffected by expectations or speculation about future events.

Forward Exchange Rate

The agreed-upon exchange rate for a currency to be exchanged on a future date.