The difference between a tax and a subsidy is that when the government places a tax on a good, it the equilibrium price and the equilibrium quantity, whereas when the government places a subsidy on a good, it the equilibrium price and the equilibrium quantity. a. increases: decreases: decreases: increases b. increases: increases: decreases: decreases c. decreases: decreases: increases: increases d. decreases: increases: increases: decreases e. increases: does not change: does not change: increases.

Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 3%. a mutual-fund rating agency randomly selects 27 months and determines the rate of return for a certain fund. the standard deviation of the rate of return is computed to be 2.19%. is there sufficient evidence to conclude that the fund has moderate risk at the alpha equals 0.05 level of significance? a normal probability plot indicates that the monthly rates of return are normally distributed.