Sellers bear the entire incidence of a tax on a good. This outcome can occur if
A) supply is perfectly inelastic.
B) the good is an inferior good.
C) demand is perfectly inelastic.
D) the demand curve is downward sloping and the supply curve is upward sloping.
E) supply is perfectly elastic.
A
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Prior to 1980, member banks left the Federal Reserve System due to
A) the high cost of discount loans. B) the high cost of required reserves. C) a desire to avoid interest rate regulations. D) a desire to avoid credit controls.
In the accelerator theory the
A) smaller the desired capital-output ratio the larger will be net investment. B) smaller the desired capital-output ratio the larger will be replacement investment. C) larger the desired capital-output ratio the larger will be net investment. D) larger the desired capital-output ratio the smaller will be replacement investment.
After 1929 in the United States, as measured by the Lorenz curve, income inequality:
a. increased sharply. b. remain unchanged. c. declined. d. increased.
Assume a U.S. investor buys a Mexican bond with a face value of MXP 1,000 and a 20 percent annual interest yield while the exchange rate is MXP 10 per dollar. What is the dollar return from the bond if the exchange rate at the end of the year is MXP 11 per dollar?
a. 9.1% b. 10.0% c. 18.2% d. 20.0% e. 32.0%