Which of the following is not subject to scarcity?
a. water
b. steel
c. diamonds
d. none of the above
d
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Assuming price elasticity of demand is reported as an absolute value, a good with unit elastic demand has an elasticity:
A. less than one, but greater than zero. B. greater than one. C. between zero and one. D. equal to one.
If the Fed pursues expansionary monetary policy then
a. the money supply will decrease, interest rates will rise and GDP will fall. b. the money supply will decrease, interest rates will fall and GDP will fall. c. the money supply will increase, interest rates will rise and GDP will rise. d. the money supply will increase, interest rates will fall and GDP will rise.
Kisa consumes the same amount of cigarettes each week regardless of her income (assume that her income is sufficiently large such that the quantity is affordable). The Equivalent Variation equals the Compensating Variation
Indicate whether the statement is true or false
If the marginal propensity to consume is 0.5, what is the value of the expenditure multiplier?
a. 1.0 b. 1.5 c. 2.0 d. 0.5 e. 10.0