The authors present an example of the effect a change in the excise tax can have on retail gasoline prices. The findings provide support for standard economic theory, as well as provide a vehicle for illustrating some of the subtleties of the analysis, including the implicit assumptions...

Intermediate macroeconomics textbooks introduce financial markets into the IS-LM analysis but typically as a beginning-of-period consideration. Here the financial market is introduced in an end-of-period model.