If the demand for farm products is income elastic, that would mean that farm products were a necessity
Indicate whether the statement is true or false
FALSE
You might also like to view...
Suppose the nominal interest rate is 7 percent annually, and you deposit $1,000. Inflation in the economy throughout the year is 7 percent. At the end of the year, you have earned:
A. an increase in your purchasing power. B. no increase in your savings. C. no increase in your purchasing power. D. a decrease in your purchasing power.
Household production, such as baking bread at home, is not included in GDP because it
A) has better quality than the bread in the store. B) has lower quality than the bread in the store. C) does not add anything of value to GDP. D) does not involve a market transaction. E) is not really production.
The government makes all economic decisions in a market economy
Indicate whether the statement is true or false
Assume a fixed demand for money curve and the Fed increases the money supply. The result is a temporary:
a. excess quantity of money demanded. b. excess quantity of money supplied. c. new equilibrium interest rate. d. decrease in the demand for loans.