If consumer purchases of a good are highly sensitive to the price of the good, economists say the demand for the good is relatively
a. inelastic.
b. elastic.
c. robust.
d. inverse.
B
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Refer to Table 11.1. What is the value of the marginal propensity to save?
A) 0.15 B) 0.25 C) 0.75 D) 0.9
Credit cards, debit cards, and e-checks are
A) always counted as money. B) not money. C) sometimes counted as money, depending on how they are used. D) sometimes counted as money, depending on what is purchased. E) sometimes counted as money, depending on what measure of money is being used.
Imagine a world with two large countries, Home and Foreign. Evaluate how Home's macroeconomic policies affect Foreign. Compare the small and the large country cases; consider both permanent monetary and fiscal policies
What will be an ideal response?
Suppose the velocity of money is not fixed, but stable at about 4% growth per year
How could the quantity theory of money be modified to include a stable growth rate of the velocity of money? In this modified version with velocity growing at about 4% per year, what would the growth rate of the other variables need to be to cause inflation?