A recent study indicated that "Stricter college alcohol policies such as raising the price of alcohol, or banning alcohol on campus, decreases the number of students who use marijuana"
This indicates that the cross-price elasticity between alcohol and marijuana is positive.
Indicate whether the statement is true or false
FALSE
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In the figure above, the ________ gap is one trillion dollars. To close the gap, the government can ________ government expenditure and/or ________ taxes
A) recessionary; increase; decrease B) inflationary; decrease; increase C) inflationary; increase; increase D) recessionary; decrease; decrease E) recessionary; decrease; increase
If the government were to impose a fine of $4,000 for each unit of air-pollution released by a fertilizer plant, the policy would be considered
a. a subsidy. b. a regulation. c. a corrective tax. d. an application of the Coase theorem.
The future value of a deposit in a savings account will be smaller
a. the longer a person waits to withdraw the funds. b. the lower the interest rate is. c. the larger the initial deposit is. d. All of the above are correct.
By purchasing shares in a mutual fund that holds a portfolio of stocks, a person can
a. benefit from fundamental analysis, since the mutual fund requires its shareholders to perform fundamental analysis on their own. b. benefit from fundamental analysis, since the mutual fund hires one or more individuals to perform fundamental analysis for the fund. c. eliminate market risk. d. reduce the standard deviation of his or her portfolio to zero.