Which of the following statements is true?
A. No good can be inferior at all levels of income.
B. The income elasticity of demand is negative for normal goods.
C. It is possible for a good to be inferior at all income levels.
D. It is possible for all of the goods a consumer buys to be inferior.
A. No good can be inferior at all levels of income.
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Everything else held constant, an increase in the money market fund ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
Property and casualty insurance companies are organized
A) both as stock and mutual companies. B) only as stock companies. C) only as mutual companies. D) primarily as cooperatives.
The equation of exchange can be written as
a. Velocity × Nominal GDP = Price Index b. Real GDP × Price Index = Money supply c. Money supply × Price Index = Real GDP d. Money supply × Velocity = Nominal GDP
Good X sold for $40 in 1957. The CPI in 1957 was 27.6 and the CPI in 2014 was 244.537. What was the price of good X in 2014 dollars?
A) $514.60 B) $270.92 C) $1,201.60 D) $310.92 E) ?$354.40