The income effect of an inferior good is negative.
a. true
b. false
b. false
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Comparing the situation of a nominal interest rate of 10 percent and an inflation rate of 9 percent with a nominal interest rate of 6 percent and inflation rate of 2 percent, consumers would borrow more in which situation?
A) Nominal interest rate of 10 percent since real interest rate is 1 percent. B) Nominal interest rate of 6 percent since the real interest rate is 4 percent. C) Nominal interest rate of 10 percent since the real interest rate is 9 percent. D) Nominal interest rate of 6 percent since the real interest rate is 2 percent.
The current international monetary system is best described as a
a. fixed rate system. b. completely flexible rate system. c. gold standard. d. mercantilist system. e. managed floating rate system.
When the method used to collect a sample biases any conclusions that might be drawn from it, the sample is said to have a selection bias
Indicate whether the statement is true or false
Suppose the nominal gross domestic product of a nation is $1,000 and the money supply is $500 . According to the equation of exchange, the velocity of money in the nation is: a. 1,000
b. 500. c. 2. d. 500,000.