Which of these government financing methods is generally the least inflationary?
A) Printing currency
B) Borrowing from the banking system
C) Borrowing from the central bank
D) Borrowing from the non-bank public
A
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Suppose Ford, GM, and Dodge make the majority of pick-up trucks sold in the United States If they all sell for approximately the same price, and Ford offers a $2,000 rebate on new truck sales, what can Ford expect to see?
a. an unprecedented increase in truck sales b. an immediate response by GM and Dodge c. a visit from the antitrust authorities of the government d. a revolution from Ford stockholders e. announcements by GM and Dodge that plans are underway to produce a much cheaper pick-up truck in six years
For a given increase in price, a greater elasticity of demand will result in a greater a. increase in quantity demanded. b. increase in demand
c. decrease in quantity demanded. d. decrease in demand.