The interest payment on a bond is called a face value payment

A reduction in tax rates may result in a short-term reduction in government revenues, but it will also leave people with more disposable income.

a. true b. false

Relative percentage changes are used in measuring price elasticity of demand, so that

A) it does not matter whether price increases or decreases when calculating the elasticity. B) it does not matter what units are used to measure prices or quantities. C) we always obtain a positive number. D) larger numbers indicate greater responsiveness.