When the demand for a product is more elastic than the supply
A) firms pay the majority of the tax on the product.
B) consumers pay the entire tax on the product.
C) consumers pay the majority of the tax on the product.
D) firms pay the entire tax on the product.
A
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When the credit spread rises, an effective policy response might be to ________
A) lower the real interest rate on safe assets B) prevent the real federal funds rate from falling below zero C) pursue nonconventional monetary policies to restore the functioning of financial markets D) announce swift and stern action against those responsible for the financial disruption
In order to increase society's well-being, measles vaccinations might be
a. taxed to discourage production b. subsidized to encourage production c. taxed to encourage production d. subsidized to discourage production e. provided without government intervention
What is the name of the interest rate charged when the Federal Reserve loans money to banks?
a. the discount rate b. the reserve requirement rate c. the prime rate d. the federal fund rate
Econometric computer models have led to better predictability of economic events
Indicate whether the statement is true or false