If a decrease in income results in a decrease in the quantity demanded for a product, the product is ________, and the value of the income elasticity of demand is ________.
A. a normal good; positive
B. a normal good, negative
C. an inferior good; positive
D. an inferior good; negative
Answer: A
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Countries with high wages cannot export to low wage countries
Indicate whether the statement is true or false
Suppose we are at a long-run equilibrium point in an AD-AS model. Then the money supply falls. In the short run, is there any difference between what happens in the simple quantity theory of money (SQTM) version and the monetarist version of the model?
A) There is no difference. B) In the SQTM version, the price level falls; in the monetarist version, it does not. C) In the monetarist version, Real GDP falls; in the SQTM version, it does not. D) In the monetarist version, the price level falls; in the SQTM version, it does not. E) In the SQTM version, Real GDP falls; in the monetarist version, it does not.
If M = 3,000 . P = 2, and Y = 6,000 . what is velocity?
a. 1/4 b. 2 c. 4 d. 1
If currency speculators decide that the value of the dollar should rise in the future relative to the yen, this will increase the demand for dollars and decrease the supply of dollars
Indicate whether the statement is true or false