The demand for a product tends to be less elastic as the product accounts for a larger fraction of a consumer's budget.
Answer the following statement true (T) or false (F)
False
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Distinguish between fixed and flexible exchange rate systems
What will be an ideal response?
The four distinct tools of policy used by the Fed to influence the money supply are
A) interest rates, government spending, tax rates, and government transfer payments. B) open market operations, discount policy, reserve requirement policy, and adjusting interest on reserves. C) open market operations, adjusting the exchange rate of the dollar, government purchases, and reserve requirement policy. D) reserve requirement policy, discount policy, interest rates, and tax rates.
The aims of mercantilists do not include
a. achieving power and wealth for the state. b. achieving political and economic unity. c. keeping artisans in the home country. d. All of the above were aims of the mercantilists.
Some policies toward externalities provide incentives so that private decision makers will choose to solve the problem on their own. What name do we use for these types of policies?