If government imposes an excise tax on a good and the tax burden is borne equally by buyers and sellers, then
A) price elasticity of demand is unitary.
B) price elasticity of supply is unitary.
C) the absolute values of price elasticities of demand and supply are equal.
D) None of the above
C
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The Capital Asset Pricing Model
A) is a way to formulate the cost of capital. B) is a way to calculate the weighted cost of capital. C) is a usual model for stock market investing. D) none of these choices
The inflationary premium is that portion of the interest rate that reflects
a. the real return derived by lenders. b. the rush to buy goods before prices rise. c. the expected annual rate of decline in the purchasing power of money while a loan is outstanding. d. the price that one must pay for earlier availability of goods and services during a period of price stability.