Tax rebates such as those approved in 2003 might be
A. saved in the form of increased bank account balances.
B. used to pay down existing consumer debt.
C. spent on consumption goods.
D. all of the options are correct.
Answer: D
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A large government debt increases the amount of capital in the economy and thereby increases future incomes and real wages
Indicate whether the statement is true or false
Which of the following would not be considered price discrimination?
a. charging higher rates on long distance calls during normal business hours b. giving lower air fares to those who buy tickets a month before departure c. charging lower prices for senior citizens at museums d. getting separate prices for residential and commercial users of natural gas e. charging more for BMWs than for Chevrolets
The existence of economic losses induces firms to:
A. enter an industry, which shifts the market supply curve to the left and decreases market price. B. enter an industry, which shifts the market supply curve to the right and decreases market price. C. exit an industry, which shifts the market supply curve to the right and decreases market price. D. exit an industry, which shifts the market supply curve to the left and increases market price.
PriceQuantity Demanded$4300$3400$2500$1600Refer to the above data. What is the elasticity of demand between the prices of $3 and $2?
A. 0.22 B. 0.56 C. 1.22 D. 0.40