Suppose a U.S.-made machine costs $500 and the exchange rate is 100 yen = $1 . A Japanese firm purchasing this machine would pay
a. 100 yen
b. 500 yen
c. 5,000 yen
d. 10,000 yen
e. 50,000 yen
E
Economics
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The largest and fastest-growing category of federal government expenditures is
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When a demand curve is vertical, the elasticity of demand is equal to
A. 0. B. 1. C. ?. D. -1.
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Is internally held public debt or externally held public debt less likely to be a problem? Explain
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Homer earns $10,000 per year. Each year he spends $5,000 and saves $5,000. He pays a 5 percent sales tax on all of his spending. Assuming the sales tax is the only tax he pays, his average tax rate out of his income is
A) 0 percent. B) 2.5 percent. C) 3.5 percent. D) 5.0 percent.
Economics