A luxury good has
A) a negative income elasticity.
B) a cross elasticity of one.
C) a very high income elasticity.
D) a negative price elasticity.
C
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During Britain's brief alignment with the ERM from 1990-1992, the trilemma tells us that monetary policy authority no longer existed in Britain. Why?
A) Britain could print more pounds, but could not increase its gold stock. B) Britain kept monetary growth rates at zero. C) The British interest rate equaled the German rate to attain uncovered interest parity. D) The British could lower unemployment using other means such as fiscal policy.
How did the U.S. government make the American public have confidence in the nation's currency in the 1870s?
(A) The government permitted state-chartered banks to issue currency. (B) The government established the First Bank of the United States. (C) The government backed the currency with cotton. (D) The government adopted the gold standard.
EU deepening refers to
A) legislation that restricts the sovereignty of individual countries. B) activities that cause increased levels of integration in the national economies. C) extending the boundaries of the EU to include new members. D) adding additional countries into the single currency area.
If the Fed wants to increase AD, it should do which of the following?
A. Conduct open market purchases. B. Raise the discount rate. C. Lower capital gains tax rates. D. Raise the required reserve ratio.