Neither the demand nor the supply of gasoline is perfectly elastic or inelastic. When the government increases the federal tax on gasoline, the effect on buyers is that the price they pay
A) rises.
B) falls.
C) does not change.
D) rises if the demand is inelastic and falls if the demand is elastic.
E) rises if the supply is inelastic and falls if the supply is elastic.
A
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A creditor nation means a nation
A) whose exports exceed its imports. B) whose current account is larger than its capital account. C) whose current lending to the rest of the world exceeds its borrowing from the rest of the world. D) who through its history has invested more in the rest of the world than other countries have invested in it.
Banks are better at solving the stockholder-lender conflict than rating agencies when they
A) are allowed to hold a substantial ownership stake in the borrowing firm. B) steer clear of holding any ownership stake in the borrowing firm. C) operate in markets-oriented financial systems. D) issue individually-approved loans rather than lines of credit.