Money demand is given by Md/P = 1000 + .2Y - 1000i. Given that P = 200, Y = 2000, and i = .10, velocity is equal to
A) 0.65.
B) 0.75.
C) 1.33.
D) 1.54.
D
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National income is calculated as GDP:
a. plus depreciation. b. plus exports. c. minus imports. d. minus depreciation.
The laws governing patents and copyrights
a. eliminate the need for firms to engage in research and development. b. are intended to serve private interests, not the public's interest. c. reduce fixed costs for firms that obtain them. d. None of the above is correct.
If the demand for a product is elastic, then
A. The percentage change in quantity demanded is greater than the percentage in price. B. The change in the quantity demanded is greater than the change in income. C. The percentage change in price is greater than the percentage change in quantity demanded. D. Buyers are not very sensitive to a change in price.
If the price elasticity of demand for insulin is equal to zero then the demand curve for insulin is
A) horizontal. B) downward sloping. C) curvilinear. D) vertical.