If a good is inferior, its
A. Income elasticity of demand is positive.
B. Cross-price elasticity is negative.
C. Price elasticity of demand is negative.
D. Income elasticity of demand is negative.
Answer: D
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While on the gold standard prior to 1914, an ounce of gold could be redeemed for ________ , after World War II it could be redeemed for ________
a. $4; $20 b. $4; $5 c. $20; $35 d. $4; $35
Which of the following shifts the short-run but not the long-run aggregate-supply curve left?
a. an increase in the expected price level b. a decrease in the expected price level c. a decrease in how much people want to consume d. an appreciation of the dollar
From the long-run perspective of economic growth, saving
A. Shifts the production possibilities curve inward. B. Is a basic source of investment financing. C. Threatens growth because of the paradox of thrift. D. Causes the long-run aggregate supply curve to shift to the left.
Which statement is true?
a. The prime interest rate will be higher than the Federal funds rate b. The Federal funds rate and the prime interest rate will be the same c. The Federal funds rate will be higher than the prime interest rate d. The prime interest rate will be the same as the discount rate