If an increase in income results in a rightward parallel shift of the demand curve, then at any given price, the price elasticity of demand will have
A) increased in absolute terms.
B) decreased in absolute terms.
C) remained unchanged.
D) increased, decreased or stayed the same. It cannot be determined.
B
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You have a choice among three options. Option 1: receive $900 immediately. Option 2: receive $1,200 one year from now. Option 3: Receive $2,000 five years from now. The interest rate is 15 percent (0.15) per year. Rank these three options from highest present value to lowest present value
a. Option 1, Option 2, Option 3 b. Option 3, Option 2, Option 1 c. Option 2, Option 3, Option 1 d. Option 3, Option 1, Option 2 e. Option 1, Option 3, Option 2
The capital account balance is equal to the negative of
A. Unilateral transfers + exports + imports. B. Trade balance + unilateral transfers + net investment income. C. Trade balance + current account balance + services balance. D. Current account balance + exports + unilateral transfers.
According to the simple quantity theory of money, a change in the money supply of 9.6 percent would lead to a
A. 9.6 percent change in velocity. B. 9.6 percent change in real GDP. C. 9.6 percent change in nominal GDP. D. 9.6 percent change in aggregate supply.
Fixed exchange rates are fixed by
A. international speculators who manipulate the world’s currencies. B. international demand and supply. C. national governments. D. All of the above are correct.