Robert must always have sugar in his coffee. For Robert, the cross price elasticity of demand for coffee and sugar is
A) equal to 0.
B) negative.
C) positive.
D) impossible to determine without more information.
Answer: B
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An increase in nominal GDP will
A. decrease the transactions demand and the total demand for money. B. decrease the transactions demand for money but increase the total demand for money. C. increase the transactions demand and the total demand for money. D. increase the transactions demand for money but decrease the total demand for money.
If house purchases and renting an apartment are substitutes, then an increase in the price of a new house results in a rise in the rent charged for apartments
Indicate whether the statement is true or false
The largest component of current consumption expenditure is ________, while the most volatile component is ________
A) durable goods, nondurable goods B) durable goods, services C) services, durable goods D) services, nondurable goods E) nondurable goods, services
Consider a PPC with automobiles on the vertical axis and cotton on the horizontal axis. The discovery of a new fertilizer that improves crop yield will shift:
a. the vertical intercept up but will not shift the horizontal intercept. b. the horizontal intercept to the right but will not shift the vertical intercept. c. the horizontal intercept to the left and the vertical intercept upward. d. the vertical intercept downward and the horizontal intercept to the right. e. neither the horizontal intercept nor the vertical intercept.