A $2.00 increase in the size of a tax on a good will only cause the price for buyers to increase by $2.00 if
A) demand is perfectly inelastic.
B) demand is perfectly elastic.
C) demand is unit elastic.
D) demand is inelastic, but not perfectly inelastic.
E) demand is elastic, but not perfectly elastic.
A
Economics
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Indicate whether the statement is true or false
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Suppose the required reserve ratio is 0.2 and the Fed buys $100,000 in government securities from Big Bank. The commercial banking system creates _____ as a result of this initial injection by the Fed
a. $1,000,000 b. $500,000 c. $100,000 d. $80,000 e. $200,000
Economics