A Giffen good is a good for which an increase in the price
a. decreases the quantity supplied.
b. increases the quantity supplied.
c. decreases the quantity demanded.
d. increases the quantity demanded.
d
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How does a rise in the foreign exchange rate affect aggregate demand in the United States? Explain your answer
What will be an ideal response?
Speculators in the financial market are:
A. largely thought to be detrimental to the overall health of the financial system. B. illegal, and often work in the "grey" markets despite this. C. seen by most as necessary for the health of the financial system. D. debated by some as to whether they contribute to the financial system's success.
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Income elasticity of demand measures how ____________________.
A. responsive the quantity of one good demanded to a change in the price of another good B. the consumption of various goods and services respond to change in income C. the quantity demanded responds to a change in price D. responsive the quantity supplied is to a change in price