The income elasticity for cars is high. This is best illustrated by which of the following?
(a) College students buy a high percentage of the lower priced, dependable foreign cars.
(b) The purchase of all hybrid cars increases in response to the call to reduce the auto's footprint.
(c) U.S. cars built by foreign automakers sold at relatively lower prices than their equal American counterparts.
(d) All of the above.
Question 2
Which of the following policies are likely to increase national savings?
a. running larger government budget deficits.
b. decreasing taxes on stock dividends.
c. reducing taxes on consumption.
d. having to pay higher interest rates on the national debt.
e. none of the above.
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