If demand is relatively elastic and supply is relatively inelastic, then the incidence of a tax will fall mainly on consumers

If (X ? IM) < 0, then capital inflows

a. will be zero. b. will be greater than zero. c. will be less than zero. d. can be zero, positive, or negative.

Economist B believes that the economy can get stuck in a recessionary gap. This economist most likely believes that

A) wages and prices are flexible. B) wages and prices are inflexible downward. C) government may need to enact contractionary fiscal policy to move the economy out of a recessionary gap. D) the economy is self-regulating. E) none of the above