If a good has an elastic demand, then:
A. a small percentage change in price will cause virtually no change in quantity demanded.
B. any percentage change in price will cause an almost immediate response in quantity demanded.
C. a large percentage change in price will cause a smaller change in quantity demanded.
D. a small percentage change in price will cause a larger percentage change in quantity demanded.
Answer: D
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The measured distribution of ________ is a more accurate indicator of the degree of economic inequality than the measured distribution of ________ because ________ data does not include ________
A) income; wealth; wealth; human capital B) wealth; income; income; holdings of real estate C) wealth; income; income; human capital D) income; wealth; wealth; employment information
If banks are prevented from lending out funds, there will be no money creation in an economy
a. True b. False Indicate whether the statement is true or false
A decrease in the interest rate reduces the opportunity cost of holding money
a. True b. False
Which of the following is NOT an inference of the rational expectations hypothesis?
A. Government policy actions that are anticipated have no real effects in the short run. B. Government policy actions have no real effects in the short run unless the actions are unanticipated. C. Government policy actions have no real effects in the long run. D. Government policy actions that are unanticipated have no monetary effects in the short run.