The absolute value of the marginal rate of substitution is a measure of

A. the slope of a budget constraint.
B. the relative price of two goods.
C. income effect of a price change.
D. the slope of an indifference curve.


Answer: D

Economics

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Given the reserve-holding ratio e and the fraction of deposits held as cash c, the money multiplier becomes

A) ec/(e - c). B) (1 + c)/(e + c). C) (1 - c)/ec. D) 1 - e - c. E) ec - (1/c).

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The Kansas-Nebraska Act of 1854 did not allow popular sovereignty over the issue of slavery

Indicate whether the statement is true or false

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If income decreases by 20% and, in response, the quantity of housing demanded decreases by 14%, then the income elasticity of demand for housing is

A. -1. B. 1.43. C. -0.7. D. 0.7.

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