The effect of a drought on the price of an agricultural product will be greater the more __________ the demand for the agricultural product
A) price inelastic
B) price elastic
C) income elastic
D) a and c
E) b and c
A
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If interest rates have been increasing, adaptive expectations would predict
A) that interest rates will increase. B) that interest rates will decrease. C) that inflation rates will increase. D) that inflation rates will decrease.
This graph depicts a tax being imposed, causing demand to shift from D1 to D2. The distance AC in the graph shown represents all of the following except the:
A. amount of the tax.
B. difference between what the consumer pays and what the seller receives.
C. "tax wedge."
D. total tax revenue generated for the government by imposing the tax.
During the turmoil in the market for subprime mortgages in 2007 and 2008, the Fed increased the volume of discount loans. The goal of the Fed was to
A) reduce the rate of inflation. B) stimulate economic growth. C) reduce unemployment. D) reassure financial markets and promote financial stability. E) reduce the current account deficit.
Refer to the given table. The marginal propensity to consume is:
A. .5.
B. .75.
C. .8.
D. .9.