The U.S. economy has never experienced deflation
a. True
b. False
Indicate whether the statement is true or false
False
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The U.S. economy has become a less open economy over the past 50 years.
Answer the following statement true (T) or false (F)
Which of the following will increase the velocity of circulation?
a. Interest rates increase. b. The inflation rate decreases. c. Federal banking legislation abolishes credit cards. d. Employers decide to pay employees once a month instead of once a week.
We would expect:
A. the demand for Coca-Cola to be less price elastic than the demand for soft drinks in general. B. the demand for Coca-Cola to be more price elastic than the demand for soft drinks in general. C. no relationship between the price elasticity of demand for Coca-Cola and the price elasticity of demand for soft drinks in general. D. none of these to hold true.
When discussing the price elasticity of demand we generally refer to the absolute price elasticity of demand by consumers. This means that we will
A. consider absolute rather than relative changes. B. ignore its relationship to demand. C. disregard the minus sign. D. disregard the law of demand.