A normal good is one
A) with a downward sloping demand curve.
B) for which demand increases when the price of a substitute rises.
C) for which demand increases when income increases.
D) none of the above
C
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Answer the next question based on the following data. All figures are in billions of dollars.Gross investment$18Net exports2Residential fixed investment5Inventory investment3Net investment13Consumption (depreciation) of fixed capital is ________.
A. $5 B. $15 C. $13 D. $16
A good is considered by economists to be inferior if
a. consumers buy less when price rises b. consumers buy less when income rises c. consumers buy less when price falls d. consumers buy more when income rises e. better quality goods exist
Hong Kong is one of the top four largest markets in the world in foreign-exchange trades and the largest in Asia.
a. true b. false
Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks are subject to a uniform 10 percent reserve requirement and demand deposits are the only form of money. A commercial bank receiving a new demand deposit of $100 would be able to extend new loans in the amount of:
A. $10. B. $90. C. $100. D. $1,000.