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Describe and explain the electoral model of monetary and exchange-rate politics.
Excise-Tax Revenues
Government income derived from taxes imposed on specific goods, services, or activities.
Tax Rate
The percentage of income or value of goods that is collected by the government as tax.
Elastic Demand
Product or resource demand whose price elasticity of demand is greater than 1, so that any given percentage change in price leads to a larger percentage change in quantity demanded. As a result, quantity demanded is relatively sensitive to (elastic with respect to) price.
Price Elasticity
A measure of how sensitively the quantity demanded of a good or service responds to a change in its price.
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