For people who live near a bus route, a subway station, or a commuter rail line, public transportation provides a substitute to driving their own cars
So, for these people, the cross-price elasticity of demand between gasoline and public transportation is
A) zero. B) positive. C) negative. D) infinity.
B
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All else equal, if the risk associated with U.S. stocks is perceived to have fallen compared to financial assets in other countries, then the market equilibrium value of the exchange rate for the U.S. dollar will:
A. rise. B. be equal to the value chosen by the Federal Reserve. C. become fixed. D. fall.
The simple spending multiplier understates the amount by which output changes
a. True b. False Indicate whether the statement is true or false
One of the principal factors behind the U.S. trade deficits of the 1990s has been
A. slow growth and recession in many important trading partners. B. rapid growth and inflation in many important trading partners. C. significant depreciation of the dollar. D. rising real interest rates in the United States.
The normative economic goals of developing countries:
A. focus primarily on achieving an equitable distribution of income. B. focus primarily on meeting basic needs. C. are the same as those of developed countries. D. focus primarily on achieving economic stability.