According to one study, the price elasticity of demand for cigarettes is 0.25. To decrease the consumption of cigarettes by 8 percent, a tax on cigarettes must raise the price of cigarettes by

Which of the following would tend to increase AD?

a. a commercial bank using excess reserves to extend a loan to a customer b. a commercial bank purchasing U.S. securities from the Fed as an investment c. an increase in reserve requirements d. an increase in the discount rate

To derive personal income from national income, you

a. subtract retained earnings, Social Security taxes, and transfer payments, and add in corporate business taxes b. subtract retained earnings, Social Security taxes, corporate business taxes, and add in transfer payments c. subtract retained earnings, corporate business taxes, and transfer payments, and add in Social Security taxes d. subtract corporate business taxes, Social Security taxes and transfer payments, and add in retained earnings e. subtract Social Security taxes, retained earnings, and personal taxes, and add in transfer payments