A tax is imposed on the sale of a product. As long as neither the supply nor the demand is perfectly elastic or inelastic
A) there is no change in the price paid by the consumers.
B) the price paid by the consumers increases by the full amount of the tax.
C) the price paid by the consumers increases by less than the amount of the tax.
D) the price paid by the consumers increases by more than the amount of the tax.
C
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The "Fisher Effect" occurs when a one-percentage-point rise in expected inflation ________ interest rate by one percentage point
A) raises the expected real B) lowers the expected real C) raises the nominal D) lowers the nominal
Futures and options contracts are examples of derivative securities.
Answer the following statement true (T) or false (F)
The price of borrowing is known as the:
A. equilibrium price. B. interest rate. C. transaction cost. D. None of these is true.
The automobile market is an example of a perfectly competitive market
a. True b. False