If the absolute value of the tax elasticity of supply is 8, a tax cut of 0.5 percent should cause the output supplied to
A. Decrease by 16 percent.
B. Decrease by 4 percent.
C. Increase by 4 percent.
D. Increase by 16 percent.
Answer: C
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Tobin's generalized portfolio approach to the demand for money is based on the assumption that
A) money is needed for transactions. B) all interest-bearing assets are risky. C) the levels of risk and return vary among assets. D) variations in wealth have little effect on asset demands.
Which of the following may involve external benefits? a. drunken driving
b. smoking. c. public education. d. highway congestion.
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
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What product did the Roman citizen Erasmo (c. 130 A.D.) produce and how did he maintain his trade secret?
What will be an ideal response?