Where Es is the elasticity of supply and Ed is the own price elasticity of demand, the fraction of the tax passed on to consumers in the form of higher prices is
A) Es/(Es-Ed).
B) Ed/(Es-Ed).
C) Es/(Ed-Es).
D) Ed/(Ed-Es).
E) Ed/Es.
A
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The supply of money curve is
A) vertical because the quantity of money is fixed at any one moment. B) horizontal because interest rates are fixed at any one moment. C) horizontal because the Fed controls the quantity of money supplied. D) upward sloping, showing the influence of the interest rate. E) downward sloping, showing the negative influence of the interest rate.
The "dual" nature of our banking system got its start in the
A) 1820s. B) 1860s. C) 1910s. D) 1930s.
Permanent tax cuts have a larger impact on consumption spending than temporary ones
a. True b. False Indicate whether the statement is true or false
A firm suffering economic losses decides whether or not to produce in the short run on the basis of whether
A. revenues from operating are sufficient to cover fixed plus variable costs. B. revenues cover variable costs. C. revenues from operating are sufficient to cover fixed costs. D. Firms suffering economic losses will always shut down.