If an automobile manufacturer has an agreement with its tire supplier, this is an example of a ________ agreement.

Suppose the government has a budget deficit of $2 billion. If there is no Ricardo-Barro effect, how much crowding out of investment occurs?

A) some crowding out occurs, but less than $2 billion B) more than $2 billion C) exactly equal to $2 billion dollars D) No crowding out occurs and investment does not change. E) No crowding out occurs because investment increases.

Refer to the scenario above. Thomas's arc elasticity of demand for wine is:

A) -0.33. B) -0.67. C) -0.25. D) -1.