Families go through good times and bad times financially. It's now bad times for the Althoff family. The family buys more macaroni because its principal income earner has been laid off work for several months. This means that the Althoffs'
a. demand curve for macaroni is elastic
b. income elasticity for macaroni is negative
c. demand for macaroni reflects Engel's law
d. price elasticity of demand for macaroni is greater than one
e. price elasticity of demand for macaroni is less than one
B
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One criticism of the Fed's policy of forward guidance during the recession of 2007-2009 is that it contributed to a prolonged period of abnormally low interest rates, leading to speculative bubbles in stocks or other financial assets as investors
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During a war, a government will often draft people, most of whom are presently employed, into the army. An economist, computing the real cost of the war, would be sure to include which of the following items?
a. the value of the civilian goods no longer produced by the new soldiers b. the cost of feeding and clothing the new soldiers c. the dollar cost of the payroll d. the higher prices of civilian goods due to wartime shortages e. the cost of transporting the soldiers to combat
An example of a company that uses financial markets to raise money is
A. a local television news website. B. the Social Security Administration. C. your local carryout restaurant. D. the Ford Motor Company.