If the price of a movie rises 3 percent and, as a result, the quantity demanded of video rentals increases 6 percent, then the cross elasticity of demand is
A) 2.
B) 1/2.
C) -1/2.
D) -2.
E) 9.
A
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Refer to Table 22-5. Consider the statistics in the table above in describing the industrialized countries. Are these consistent with the economic growth model? Briefly explain
What will be an ideal response?
Which of the following is not included in the investment component of GDP?
a. The purchase of 100 shares of stock. b. The purchase of a $1000 bond. c. A firm's purchase of a used van to use for deliveries. d. None of the above are included in the investment component of GDP.
Some economists argue that
A) discretionary monetary policy is ineffective because of its long identification lag. B) discretionary fiscal policy is ineffective because of its long recognition lag. C) discretionary monetary policy is ineffective because of its long implementation lag. D) discretionary fiscal policy is ineffective because of its long implementation lag.
Bonds cannot have yields below the effective lower bound because:
A. the banking technology does not exist to deal with negative yields. B. the U.S. treasury guarantees all bonds to have a positive yield. C. people can always hold cash. D. all of the answers given are correct.