What determines the proportion of a unit excise tax that will be passed on to consumers in the form of higher prices?
A) the nature of the projects funded by the tax
B) the number of additional taxes that consumers have to pay
C) the popularity of the tax
D) the degree to which quantity demanded and supplied of the good respond to price changes
D
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The velocity of money in circulation measures: a. the average length of time that people hold wealth
b. how fast aggregate spending will increase for a given decline in money demand. c. how fast inflation will rise for a given increase in the money supply. d. how quickly money changes hands. e. how quickly banks can create money.
Many economists believe that skill-biased technical change has increased the incomes of highly skilled workers and decreased the incomes of low-skill workers
a. True b. False Indicate whether the statement is true or false