Refer to Figure 26-4. If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 4 percent, then the equilibrium real interest rate is
a. 6 percent
b. higher than 8 percent
c. lower than 6 percent.
d. between 6 percent and 8 percent
Answer: d. between 6 percent and 8 percent
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The excess burden of an excise tax is
A. greater the more inelastic the supply curve. B. greater the more elastic the demand curve. C. smaller the more elastic the supply curve. D. greater the more inelastic the demand curve.
If economists say, "the price is too high," they mean that:
A) quantity demanded is greater than quantity supplied. B) quantity supplied is greater than quantity demanded. C) the equilibrium price exceeds the current price. D) the price of a good will tend to increase.
Suggest a remedial product-tax measure for each of the following externalities if: (1) the whole world had only one government and (2) a particular nation is harmed and is acting alone. The individual situations, (a. - c.), are as follows:a. Domestic pollution from domestic consumption of a productb. Domestic pollution from foreign consumption of a productc. Global pollution from world consumption of a product
What will be an ideal response?
A downward-sloping line that makes a 45-degree angle with the horizontal and vertical axes has a slope of:
A. infinity. B. zero. C. 1. D. -1.