If a 5% increase in price leads to an 8% decrease in quantity demanded, demand is
a. perfectly elastic
b. elastic
c. unit elastic
d. inelastic
e. perfectly inelastic
B
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If the economy is at point R, most likely this economy is experiencing __________.
Proprietary income refers to
A. revenue flowing to the government from taxes. B. revenue generated by government-run businesses. C. transfer payments from the government to the owners of property resources. D. money borrowed by the government to finance its operations.
Along an indifference curve
A) the marginal rate of substitution is constant but not equal to zero. B) the consumer does not prefer one consumption point to another. C) the marginal rate of substitution is equal to 0. D) the consumer prefers some of the consumption points to others.
In utilizing unconventional monetary policy in 2009, the Federal Reserve purchased
a. real estate worth more than $2 trillion. b. $800 billion in Treasury bills. c. over $1 trillion in mortgage backed securities. d. $600 billion in long-term Treasury bonds.