A study of New York City (NYC) tax rates concluded that taxes on the nonmanufacturing sector should be higher since that sector has fewer alternatives. Manufacturers are more mobile and may move to avoid higher taxes. This means that
a. nonmanufacturing firms have a more elastic demand for NYC locations.
b. manufacturing firms have an inelastic demand for the NYC locations.
c. nonmanufacturing firms have relatively inelastic demand for the NYC locations.
d. nonmanufacturing demand for NYC locations is perfectly elastic.
c
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If a rich country grows at a faster rate than a poor one, then
A) the gap in their standard of living will widen over time. B) the gap in their standard of living will close over time. C) the difference in their living standards will not change over time. D) whether or not the living standards gap widens or closes over time depends on the absolute size of the relative growth rates.
M1 does not include
A) MMMFs. B) travelers' checks. C) currency. D) transaction accounts.