Economists are fond of calculating measures of elasticity. If we calculate the income elasticity of money as the %?M / %?PY, where M is the quantity of money held and PY is nominal income, would you suspect the coefficient to be positive, negative or zero? Will the absolute value be greater or less than 1? Be sure to explain your choices.
What will be an ideal response?
First, we should see a positive elasticity (positive coefficient) since as nominal incomes increase the demand for money also increases and vice versa. The size of the coefficient should be less than one. As incomes increase it is unlikely that each additional dollar of income will be held as money.
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Approximately 1 in 12 business firms fail each year in the Unites States.
Answer the following statement true (T) or false (F)
Because employer-provided health insurance was too expensive, a major employer decided to self-insure and simply pay for medical bills itself rather than a premium to an insurance company. As a result
a. they are more likely to institute a wellness program for employees b. they are less likely to institute a wellness program for emp c. they are indifferent with regards wellness programs d. they will regret this decision
When John F. Kennedy said, "A rising tide lifts all boats," to what was he referring?
a. With government intervention, all citizens receive a greater allocation of resources. b. With market forces working independently, everyone receives an equitable share of resources. c. With economic growth, more families are pushed above the poverty line. d. None of the above are correct.
Legislation or the creation of new rules to end property rights disagreements
What will be an ideal response?