If elasticity of demand is 1.8, elasticity of supply is 0.7, and a 20 percent excise tax is levied on the good:
A. the tax burden on consumers will be greater.
B. the tax burden on suppliers will be greater.
C. the tax burden will be the same for both.
D. one cannot say who will bear the greater burden without knowing the tax.
Answer: B
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The consumer price index (CPI), the personal consumption expenditures price index (PCE), and the core PCE have over the last 15 years
A) moved roughly together with the CPI being the most stable. B) moved roughly together with the PCE being the most stable. C) not moved together, with the CPI being the most stable. D) moved roughly together with the core PCE being the most stable.
A sterilized intervention is actually a combination of two transactions. What are they and what is the effect on the monetary base?
What will be an ideal response?
Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was $50; in 2014, the basket's cost was $52; and in 2016, the basket's cost was $55 . The value of the CPI in 2016 was
a. 90.9. b. 104.0. c. 105.0. d. 110.0.
To a bank, a loan the bank has made to its borrowers is classified as
A) an asset. B) a liability. C) vault cash. D) excess reserves. E) bank capital.