As we move down a linear demand curve, the absolute value of the price elasticity of demand:
A) increases.
B) stays the same.
C) decreases.
D) cannot be determined without more information.
C
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Which of the following statements about the budget deficit is TRUE?
A) It is equal to the public debt. B) It is a stock variable. C) It is a flow variable. D) none of the above
Monopolists can make an economic profit in the long-run because of barriers to entry
Indicate whether the statement is true or false
Which of the following explains why mortgages weren't considered securities prior to 1970?
A) The Federal Reserve Act of 1913 prohibited mortgages from being considered securities. An amendment to the Act was approved in 1970 that allowed mortgages to be considered securities. B) Prior to 1970, mortgages were rarely resold in the secondary market. C) Until 1970, the average annual increase in housing prices did not allow the buying and selling of mortgages to be profitable. There has been a significant annual increase in housing prices and mortgage values since 1970. D) Congress passed a law in 1970 stipulating that mortgages could be classified as securities.
Which of the following was given as a reason to doubt the idea of "New Economy"?
A) High growth in computer investment could not be sustained. B) Actual real GDP could not continue to grow slower than natural real GDP growth. C) Inflation could not be reduced by a higher productivity growth rate. D) All of the above.