If the demand for a good falls when income falls, then the good is called a(n)
a. normal good.
b. regular good.
c. luxury good.
d. inferior good.
a
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A market system works very well in solving some basic problems of the economy but it fails in some cases. Provide examples.
What will be an ideal response?
The Federal Reserve's credit policy refers to
A) the Fed's direct lending to homeowners and students. B) regulations on terms on credit cards that banks issue. C) a direct credit on bank depositors' saving and checking accounts. D) the Fed's direct lending to financial and nonfinancial firms.
Net foreign investment is a measure of net capital outflows, equal to capital outflows minus capital inflows in a given period of accounting
Indicate whether the statement is true or false
If the money supply is $500 and nominal income is $4,000, the velocity of money is
A) 1/20. B) 1/8. C) 8. D) 20.