If the government offers to reduce your property taxes by 10 percent if you install solar heating for your home, this would be an example of

A sudden decrease in the U.S. price level

A) makes creditors in dollars better off. B) makes creditors in dollars worse off. C) do not affect creditors in dollars. D) makes creditors in DM better off. E) makes those with dollar debts better off.

The present value of a given payment will be lower

a. if the payment comes sooner than expected b. the lower the prevailing interest rate c. the further in the future the payment is to be received d. the sooner the payment is to be received e. if the payment is made in cash

Two goods must have infinite cross elasticities to be considered as belonging to the same market

Indicate whether the statement is true or false

Nine friends who love the beach decide to pool their financial resources and equally share the cost of a one-week house rental on Nantucket. Suppose that the beach outside of the house becomes more congested when the nine additional people join the other beachgoers. Which of the following statements is not correct?

a. Use of the beach by the nine new beachgoers will yield a negative externality. b. The town can reduce the congestion externality by raising the fee to access the beach. c. An increase in the fee to access the beach could be viewed as a corrective tax on the externality of congestion. d. Each of the nine friends would have been better off staying at home.