If a 3 percent increase in the price of tennis shoes leads to a 7 percent increase in the number of tennis shoes supplied
A) the elasticity of supply equals 0.43.
B) the elasticity of supply equals 2.33.
C) income elasticity equals 2.33.
D) supply is inelastic.
B
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If the currency drain ratio increases, how can the Fed adjust the monetary base to offset the effect on the quantity of money?
What will be an ideal response?
Private property rights imply that people can own things, and they can do what they want with what they own even if they infringe on the private property rights of others
a. True b. False Indicate whether the statement is true or false
A constitutional amendment requiring the federal government to balance its budget annually would
a. require a decrease in taxes and/or an increase in government spending during an economic expansion. b. require an increase in taxes and/or a decrease in government spending during a recession. c. destabilize the economy. d. All of the above.
Fearing that the economy was overheating, policymakers instituted a temporary tax surcharge in 1968. This temporary surtax:
A. successfully reduced consumption sufficiently to cool down the economy. B. reduced savings but had little effect on consumption. C. drastically reduced both savings and consumption. D. increased savings and reduced consumption.