Suppose the supply curve and the demand curve both have unitary elasticity at all prices. The price increase to consumers resulting from a specific tax of $1 imposed on sellers will be
A) $1.
B) 50 cents.
C) zero.
D) Impossible to calculate without knowing the slope of the supply curve.
B
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To the options buyer, the premium paid for the contract represents the
A) maximum return. B) largest potential loss. C) yield. D) transaction cost.
Any factor that reduces resource availability causes
a. the aggregate demand curve to shift to the right b. the aggregate demand curve to shift to the left c. the aggregate supply curve to shift to the right d. the aggregate supply curve to shift to the left e. a movement to the left along the existing aggregate supply curve
The Federal Reserve raises the discount rate. This would be an example of:
a) easy fiscal policy b) tight monetary policy c) offensive monetary policy d) tight fiscal policy e) easy monetary policy
The real value of money ________ as the price level falls.
A. remains the same B. decreases C. increases D. None of these