Author Question: The burden of a tax falls entirely on sellers if ________. A) the price elasticity of demand is ... (Read 78 times)

jeatrice · **on:** Jun 29, 2018

The burden of a tax falls entirely on sellers if ________.

A) the price elasticity of demand is unitary elastic
B) the price elasticity of supply is greater than 1
C) the income elasticity of demand is high
D) the price elasticity of supply is zero (perfectly inelastic)

Question 2

To increase the quantity of money in the economy, the Federal Reserve can

A) print more money and give it to the banks.
B) increase the required reserve ratio.
C) buy government bonds in an open market operation.
D) sell government bonds in an open market operation.
E) cut taxes.