The president of Tucker Motors says, "Lowering the price won't sell a single additional Tucker car." The president believes that the price elasticity of demand is:
A. perfectly elastic.
B. perfectly inelastic.
C. unitary elastic.
D. elastic.
Answer: B
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Explain how a mortgage lender may act differently if it intends to resell mortgages in secondary markets instead of holding the mortgages itself
What will be an ideal response?
Within a system of perfectly flexible exchange rates, an decrease in the United States demand for imports would result in a
a. rise in the exchange rate. b. fall in the exchange rate. c. balance of payments deficit. d. balance of payments surplus.
Based on the graph showing the effects of a government budget deficit, a budget deficit would ______.
a. increase the demand curve for loanable funds
b. decrease the demand curve for loanable funds
c. increase the supply curve for loanable funds
d. decrease the supply curve for loanable funds
Perhaps the largest problem with corrective taxes is that ______.
a. they can be collected from each firm only once b. they affect everyone equally, whether they add to the problem or not c. the externalities they apply to are hard to measure d. there is no way to enforce and collect them