The price elasticity of demand along a vertical demand curve is
A) elastic at high prices and inelastic at low prices.
B) infinite.
C) one.
D) zero.
Answer: D
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Assume a manager of a major league baseball team has a player that is the best pitcheron team the team. However, he decides to to have him play right field instead. It turns out that he is not the best right fielder on the team
How might this manager defend his decision?
The pay-as-you-go system for the Social Security System entails. ________
A) a transfer of payments from those currently working to retirees B) taxing the import and export of goods and services into an out of the United States C) a number of current retirees that exceeds the number of employed individuals D) issuing additional government debt in the event of budget surplus
If the nominal interest rate increases:
A. the velocity of money should decrease. B. the cost of holding money increases and the velocity of money should decrease. C. the cost of holding money decreases. D. the cost of holding money increases.
When a central bank is acting as a lender of last resort, it is:
A. providing banks with Treasury bills for free. B. buying long-term Treasury bonds and selling short-term Treasury notes. C. buying Treasury bills directly from the public. D. providing banks with liquidity to meet their obligations.