Author Question: In 1991, Congress levied a 10 percent luxury tax on yachts over 100,000 . The tax brought in far ... (Read 80 times)

nenivikky · **on:** Jun 30, 2018

In 1991, Congress levied a 10 percent luxury tax on yachts over 100,000 . The tax brought in far less than was anticipated, they must have passed the legislation thinking the demand for yachts was more ___ than it actually was.
a. elastic
b. inelastic
c. unit elastic
d. none of the above

Question 2

If M increases faster than V decreases:
a. nominal GDP increases.
b. nominal GDP decreases.
c. nominal GDP stays the same.
d. there is an indeterminate effect on nominal GDP.