The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have
a. An inelastic demand
b. An elastic demand
c. A demand curve that is upward sloping
d. Unitary elastic demand curve
b
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What Causes Rates to Change?
When a German company purchases a U.S. company for $20 million, in the balance of payments the value of that transaction is recorded in the
A) current account. B) investment account. C) official purchases account. D) capital and financial account. E) purchase account.
On average, the greater the unexpected decline in aggregate demand
A) the weaker is the resulting deflation. B) the greater is the resulting deflation. C) the greater is the resulting inflation. D) the greater is the rise in the price level.
Included in the investment category of GDP under the expenditure approach is the purchase of parcels of land for the purposes of realizing capital gains when real estate values rise
a. True b. False Indicate whether the statement is true or false