Figure 5-15
Hal initially consumes the combination marked as A in Figure 5-15. After his income increases, Hal consumes combination B. We can conclude that Hal views
a.
X as an inferior good and Y as a noninferior good.
b.
X as a noninferior good and Y as an inferior good.
c.
both X and Y as noninferior goods.
d.
both X and Y as inferior goods.
a
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Using the figure above, suppose education is provided by public colleges. At what level should tuition be set to ensure the efficient number of students?
A) $10,000 B) $5,000 C) $20,000 D) $25,000 E) $15,000
Studies of the HPAE confirm the importance of savings and investment in increasing economic growth
Indicate whether the statement is true or false
Bank runs and the accompanying increase in the money multiplier caused the U.S. money supply to rise by 28 percent from 1929 to 1933
a. True b. False Indicate whether the statement is true or false
If the nominal exchange rate e is foreign currency per dollar, the domestic price is P, and the foreign price is P*, then the real exchange rate is defined as
a. P/(Pe). b. P/(Pe). c. e(P/P). d. e(P/P),