For an inferior good:
a. the income elasticity is positive.
b. the income elasticity if negative.
c. the income elasticity is zero.
d. the income elasticity is unity.
B
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A sudden decrease in the U.S. price level
A) makes creditors in dollars better off. B) makes creditors in dollars worse off. C) do not affect creditors in dollars. D) makes creditors in DM better off. E) makes those with dollar debts better off.
The larger the marginal propensity to consume, the larger the multiplier effect
a. True b. False Indicate whether the statement is true or false
The kinked demand curve exists because consumers make erratic decisions
Indicate whether the statement is true or false
If the firm facing the demand curve P = 10 - Q still has zero marginal costs and is now a perfect price discriminator instead of a single price monopolist, what will profits be if fixed costs are 12? 
A. 10 B. 13 C. 38 D. 12