The transmission mechanism is the effect of changes in monetary policy on prices, real GDP, and employment
a. True
b. False
Indicate whether the statement is true or false
True
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A 10 percent decrease in income decreases the quantity demanded of pizza by 3 percent. The income elasticity of demand for pizza is
A) -0.3. B) 0.3. C) 3.3. D) 10.0.
When demand is unit elastic, a 10 percent change in the price of the good
A) will cause a change in quantity demanded of less than 10 percent. B) will cause a change in quantity demanded equal to 10 percent. C) will cause a change in quantity demanded greater than 10 percent. D) will not cause any change in quantity demanded.
The problem arising in the used car market can be alleviated by
A. providing buyers with more complete information on the condition of a used car. B. sellers offering warranties. C. having third parties certify the condition of a used car. D. All of these statements are true.
The market structure in which there is a single seller of a good or service for which there is no close substitute is
A. monopoly. B. perfect competition. C. monopolistic competition. D. oligopoly.