Author Question: Other things being equal, the less elastic demand is: a. the lower the deadweight loss is resulting ... (Read 67 times)

Lobcity · **on:** Jun 30, 2018

Other things being equal, the less elastic demand is:
a. the lower the deadweight loss is resulting from the imposition of a given tax on a product.
b. the greater the burden is of the tax borne by consumers.
c. the greater the tax revenue collected by the government is.
d. all of the above

Question 2

To what extent should monetary policy be used to fine-tune the economy?

Anonymous · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

d

Answer to Question 2

As a fine-tuning strategy, it is unlikely to be effective; there are too many other variables in the marketplace, and our predictive models are not that accurate for forecasting the future of the economy.