What does macroeconomic theory predict as the main economic effect of a reduction in the budget deficit?

Economic rent is:

A. the difference between the payment made to the owner of a factor of production and the owner's reservation price. B. sometimes higher and sometimes lower than the owner's reservation price. C. the amount people pay for an apartment in a perfectly competitive market. D. the payment made to the owner of a factor of production, which is usually equal to the owner's reservation price.

Generally, expenses on a truck are a large part of a consumer's budget, so the demand for trucks is more likely to be

a. elastic b. inelastic c. unit elastic d. perfectly elastic