During World War II (1941–45), Engel's law applied. As income rose, consumption of food dropped relative to all other goods and services purchased
Indicate whether the statement is true or false
False
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The U.S. dollar exchange rate, e, expressed as Japanese yen per U.S. dollar, will depreciate when:
A. the U.S. Federal Reserve tightens monetary policy. B. real GDP in Japan increases. C. real GDP in Japan decreases. D. U.S. consumers decrease their preference for Japanese cars.
The two main determinants of money demand are
A) GDP and the money supply. B) aggregate supply and aggregate demand. C) interest rates and income. D) the inflation rate and the money supply.
If a consumer is at an optimum, consuming A and B, and the price of B decreases, then to get to a new equilibrium the consumer must
A. purchase more A. B. purchase less A. C. purchase more of both A and B. D. purchase less B.
In the graph below, what is the price elasticity of supply (using the midpoint formula) between points A and B above?
A. 1
B. 3
C. 2
D. 1/3