If real income rises 5%, prices rise 3%, and nominal money demand rises 7%, what is the income elasticity of real money demand?
A. 4/5
B. 3/4
C. 5/6
D. 6/7
Answer: A
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The figure above shows the U.S. demand and U.S. supply curves for cherries. In the absence of international trade, cherry farmers would receive ________ per pound of cherries
A) $2.50 B) $1.50 C) $2.00 D) $1.00 E) $0.50
Who is "selling short"?
A) The grocer who sells a pound of apples today at a slashed price of 75 cents a peck B) The airline requiring you to pay for your ticket two weeks in advance of the flight C) The church that provides a free Thanksgiving dinner to the poor D) All of the above.
Generally with bond ratings, the higher the rating, the ________ the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default
A) higher; higher B) lower; lower C) higher; lower D) lower; higher
Which of the following is an example of price discrimination?
a. A Burger King in New York City charging more for a hamburger than a Burger King in Manhattan, Kansas. b. A clothing store offering shirts at ten dollars each or two for fifteen dollars. c. A movie theater charging lower ticket prices to children and senior citizens. d. A car dealer charging higher prices for cars with air conditioning.