What best describes what happens to the share of income spent on food as income increases?
a. The share increases.
b. The share decreases.
c. The share stays the same.
b. The share decreases.
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Why does the Federal Reserve Bank of New York play a special role within the Federal Reserve System?
What will be an ideal response?
Which of the following is not a characteristic of capitalism?
a. Private ownership of the factors of production. b. Businesses make their own product and price decisions. c. Public ownership of the factors of production. d. Decentralized decision-making using markets.
When a firm grows to such an extent that it is unable to coordinate between its employees properly it is likely to experience economies of scale
a. True b. False Indicate whether the statement is true or false
The rules-based monetary policy reads: The money supply will increase 3 percent each year. If the average annual growth rate in Real GDP is 2 percent and velocity increases by 1 percent each year, it follows that
A) the price level will, on average, rise 2 percent a year. B) the price level will rise 2 percent this year. C) in some years the price level will rise by more than in other years. D) in some years the price level may not change at all. E) a, c and d