"As income rises, the demand for most goods also rises." This statement
a. is inconsistent with the law of demand
b. suggests that many goods are inferior goods
c. shows that the quantity demanded is inversely related to price
d. suggests that most goods are normal goods
e. does not apply to goods traded in competitive markets
D
You might also like to view...
Since 1990 the highest economic growth rates in the world have occurred in
A. India. B. Nigeria. C. China. D. The United States.
Based on the graph showing a reduction in the growth of the money supply, as the economy moves from point D to point E on the short-run Phillips curve, real wages rise, causing companies to ______.
a. hire more new workers
b. receive higher relative prices
c. hire fewer new workers
d. increase production
With perfect capital mobility, uncovered interest parity always holds because
A. lower domestic interest rates trigger hedging to avoid exchange-rate risks. B. almost unlimited flows of capital can occur if there is any deviation from the parity. C. capital flows out at a much faster rate than it flows in if the interest rate changes. D. the no-arbitrage condition cannot be satisfied without using forward contracts.
What is strategic trade policy? What are the pros and cons of such a policy by a nation in its dealings with other nations?