In 1975, New York City increased regulated taxi fares by 17.5 percent and expected taxi revenue to increase a like amount. The taxi commission believed taxi demand was
a. unit elastic.
b. inelastic.
c. elastic.
d. perfectly inelastic.
d
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Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in
A) China retaliating by raising tariffs on some U.S. exports. B) China halting the sale of all products in the United States. C) U.S. firms never being able to meet the demand for U.S.-produced tires. D) the government demanding price cuts from U.S. tire manufacturers.
Assuming MPC is 0.80, what effect, if any, would an increase of $100 billion of U.S. exports have on the U.S. level of national income?
a. No effect since the goods would be consumed abroad b. National income increases by $100 billion c. National income decreases by $100 billion d. National income decreases by $500 billion e. National income increases by $500 billion
Nick has a certain amount of money that he wants to invest in a completely risk-free manner. He would most likely: a. deposit it in a bank or credit union
b. invest in a mutual fund. c. purchase shares on the stock market. d. hide the money somewhere in his or her home.
“Near monies” are
A. stocks, bonds, and real estate. B. U.S. notes and Federal Reserve notes. C. included in the M1 definition of the money supply. D. liquid assets that are close substitutes for money. E. All of these responses are correct.