The elasticity of demand is constant along a downward sloping straight-line demand curve
Indicate whether the statement is true or false
FALSE
You might also like to view...
A decrease in the nominal exchange rate, e, defined as the number of units of the foreign currency that one unit of the domestic currency will buy, indicates that the domestic currency has ________ relative to the foreign currency.
A. become undervalued B. become overvalued C. depreciated D. appreciated
In an open economy with floating exchange rates, monetary policy is most effective at increasing real income if
A) capital mobility is high. B) capital mobility is low. C) capital mobility is perfect. D) monetary policy is ineffective with floating exchange rates.
Open market operations are an appropriate tool for day-to-day changes in monetary policy
Indicate whether the statement is true or false
For each of the following scenarios, state the effect on the debt-to-GDP ratio:
a. The growth rate of the labor force increases. b. The primary deficit increases. c. Total factor productivity decreases. d. Seigniorage decreases. e. The nominal interest rate is constant and the growth rate of the money supply increases. f. The nominal interest rate is not constant and the growth rate of the money supply increases.