An increase in the price level ________ real wealth, which causes consumption to ________
A) lowers; decrease B) raises; decrease C) lowers; increase D) raises; increase
A
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The cross-price elasticity of demand between pancakes and waffles is positive. This indicates all of the following except one. Which is the exception?
a. Pancakes and waffles are substitutes. b. An increase in the price of pancakes will shift the demand curve for waffles to the right. c. An increase in the price of waffles will shift the demand curve for pancakes to the right. d. A decrease in the supply of waffles will shift the demand curve for pancakes to the right. e. Pancake demand and waffle demand are price elastic.
Starting from equilibrium in the money market, suppose the money supply increases. Other things being equal, this will cause an excess demand for money, leading people to sell bonds
a. True b. False Indicate whether the statement is true or false
If income redistribution policy is based on the relative concept of poverty, the war on poverty
a. will be won quite soon. b. is, by definition, unwinnable. c. has not helped at all. d. has already been won.
The cross-trade of very similar products exported and imported by trading partners seems to contradict which of the following model(s)?
a. Ricardian b. Heckscher-Ohlin c. specific-factors d. It contradicts all of these models.