Why do sellers pay all of a tax when supply is perfectly inelastic?
A) because a perfectly inelastic supply means that the demand is elastic
B) because the government requires firms to collect the tax
C) because a perfectly inelastic supply means that the quantity supplied is quite sensitive to a change in price
D) because a perfectly inelastic supply means that suppliers will produce the same amount regardless of the price
E) because in this case the price of the good that suppliers receive and keep does not change
D
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You have just noticed that the dollar appreciated and you suspect that U.S. policymakers were behind this change. Which would you choose as the most likely cause of this appreciation in the real exchange rate?
A) An increase in the money supply B) A decrease in the money supply C) A temporary increase in government purchases D) A temporary decrease in taxes
Thousands of U.S. banks failed in the 1930s because the Fed loaned too many reserves to member banks
a. True b. False Indicate whether the statement is true or false
The Norwegian government uses $500,000 of previously obtained U.S. dollars to buy $500,000 of police cars from a U.S. company. As a result of this exchange, by how much, if at all, and in which direction did: A. U.S. net exports change? B. U.S. net capital outflow change?
For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must
a. be available for work. b. have tried to find employment during the previous week. c. have previously been employed. d. All of the above are correct.