Using our model of consumer choice, is it possible for a consumer to buy less of a particular good when his income rises? Briefly explain
Yes, an increase in income will lead a consumer to buy less of a good when it is an inferior good.
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When a game has more than one Nash equilibrium,
a. at least one of them will be Pareto optimal. b. they will all tend to be unstable. c. they must provide the same total payoff to the players. d. it is difficult to predict which of them will actually occur.
Refer to Figure 18-1. The appreciation of the dollar is represented as a movement from
A) D to C. B) C to B. C) B to A. D) C to A.
Since 1973 "dirty floats" have been required because
A) PPP has not held. B) high inflation countries have stronger currencies than countries with low inflation. C) countries are not cooperating as much as original theorists predicted. D) in the short run, monetary and fiscal policy only affects the autonomous home economy. E) countries with a floating exchange rate have laissez-faire economies.
Explain why GDP per capita varies among countries even though countries eventually converge to their balanced growth paths
What will be an ideal response?