In 1991, Congress levied a 10 percent luxury tax on yachts over $100,000 . The tax brought in far less than was anticipated, they must have passed the legislation thinking the demand for yachts was more ___ than it actually was

a. elastic
b. inelastic
c. unit elastic
d. none of the above

Economics

The present value of $1 payable in two years is:

a. $1. b. $1/(1 + 2r). c. $1/(1 – 2r). d. $1/(1 + r)2.

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Economics

In the Keynesian model, equilibrium occurs when aggregate output equals aggregate expenditures

a. True b. False Indicate whether the statement is true or false

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Economics