If a decrease in income leads to an increase in the demand for macaroni, then macaroni is
A) an inferior good.
B) a neutral good.
C) a necessity.
D) a normal good.
Answer: A
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The median household income is
A) the income that separates households into two equal groups. B) the most common household income. C) the mean household income. D) the average household income.
The difference between the current account balance and net exports is
A) the capital account. B) net unilateral transfers plus net factor payments from abroad. C) adjustments in net foreign assets. D) income receipts from foreign assets.
If the world real interest rate were 6% and the domestic real interest rate in Denmark was 9%, borrowers in Denmark would borrow at the rate of ________ and lenders in Denmark would lend at the rate of ________
A) 6%; 6% B) 6%; 9% C) 9%; 6% D) 9%; 9%
The phrase "owners' equivalent rent of primary residence" means the cost of housing services for one year.
Answer the following statement true (T) or false (F)