Income elasticity of demand describes:
A. how much the quantity demanded changes in response to a change in consumers' incomes.
B. which way the demand shifts in response to a change in price.
C. how much the quantity demanded changes in response to a change in price.
D. how quickly the market will change in response to a change in consumers' incomes.
A. how much the quantity demanded changes in response to a change in consumers' incomes.
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Public policies designed to increase labor productivity do not include
a. subsidies for higher education. b. tax breaks for job retraining. c. tax breaks on corporate dividends. d. public education.
Consider the following:
(i) The accompanying diagram shows a net borrower. Complete the diagram to show how a net borrower is affected by a rise in the interest rate. Is the net borrower better off or worse off? Does the net amount borrowed increase or decrease? Explain, using substitution and income effects.
(ii) The accompanying diagram shows a net lender. Complete the diagram to show how a net lender is affected by a rise in the interest rate. Is the net lender better off or worse off? Does the net amount lent increase or decrease? Explain, using substitution and income effects.
Sweden is:
A. not a member of the Euro system or the European Union. B. a member of the Euro system but not a member of the European Union. C. a member of the European Union but not a member of the Euro system. D. a member of both the European Union and the Euro system.
Financial crises due to weak financial sectors can often be avoided if international lenders respond appropriately
Indicate whether the statement is true or false