Nonexcludability, in the case of rival goods, causes:
A. inefficiently high demand.
B. inefficiently low demand.
C. efficient, high demand.
D. efficient, low demand.
A. inefficiently high demand.
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If the absolute value of slope of the demand curve is 2.5, price is $6 per unit, and the quantity demanded is 8 units, then the price elasticity of demand is:
A. 1. 6. B. 0.3. C. 1.875. D. 0. 533.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises and GDP Price Index rises. b. The quantity of real loanable funds per time period falls and GDP Price Index falls. c. The quantity of real loanable funds per time period rises and GDP Price Index falls. d. The quantity of real loanable funds per time period and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
When a tax is imposed on a good, the result is always a shortage of the good
a. True b. False Indicate whether the statement is true or false
Explain why the new IS curve that takes into account expectations is likely steeper than the original IS curve that ignored expectations
What will be an ideal response?