If the demand curve for a good is horizontal, a tax is levied on this product is
A) split between the buyers and the sellers but not evenly so that either the buyer or the seller pays more.
B) split evenly between the buyers and the sellers.
C) paid entirely by buyers.
D) paid entirely by sellers.
E) not paid by either the buyers or the sellers.
D
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Business cycles all display the following characteristics except
A) a period of expansion followed by one of contraction. B) comovement of many economic variables. C) rising prices during an expansion and falling prices during the contraction. D) they last a period of one to twelve years.
Households affected by a "liquidity constraint" have consumption ________ sensitive to changes in current income that is predicted by the LCH, and a saving ratio that may not ________ in a recession
A) less, rise B) less, fall C) more, rise D) more, fall