When the price elasticity of demand is large in magnitude, a _____ increase in the price leads to a _____ reduction in the amount purchased and the demand curve is relatively ____.
A. slight; substantial; steep
B. slight; slight; flat
C. large; slight; steep
D. slight; substantial; flat
D. slight; substantial; flat
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Answer the next question on the basis of the following table in which columns (1) and (2) indicate the transactions demand (Dt) for money and columns (1) and (3) show the asset demand (Da) for money.(1)Interest Rate(2)Dt(3)Da12%$100$010100208100406100604100802100100If the money supply is $160, the equilibrium interest rate will be
A. 8%. B. 4%. C. 10%. D. 6%.
A stock market crash that reduces the value of an individual's trust fund would tend to
a. increase her supply of labor if the substitution effect outweighs the income effect b. decrease her supply of labor if the substitution effect outweighs the income effect c. have no impact on her labor supply decision d. increase her supply of labor e. decrease her supply of labor
The private sector cost of tax revenues is equal to the
a. tax revenue collected by government from individuals in the economy. b. income that could have been earned by government employees if they had worked in the private sector. c. difference between government expenditures and tax revenues. d. tax revenue plus the cost of tax compliance and the excess burden of taxation.
A Texas ranch sells beef to a U.S. company that sells it to a grocery chain in Japan. These sales
a. decrease U.S. exports but increase U.S. net exports. b. decrease both U.S. exports and U.S. net exports. c. increase both U.S. exports and U.S. net exports. d. increase U.S. exports but decrease U.S. net exports.