There must always be a balance of a nation's:
A. goods exports and gold imports.
B. total international payments.
C. imports and exports of goods and services.
D. net transfers and net investment income.
B. total international payments.
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Let P be the price of a good and let I represent consumer income. Which of the following demand functions represents a luxury good with inelastic price response?
A) log(Q) = 4 – 2 log(P) + 2 log(I) B) log(Q) = 4 - 0.5 log(P) + 0.25 log(I) C) log(Q) = 4 - 0.25 log(P) + 2 log(I) D) log(Q) = 4 + 2 log(P) + 0.2 log(I)
When bad money drives out good money, the price level will rise
Indicate whether the statement is true or false
Cross elasticity of demand for
a. substitutes will normally be positive. b. complements will normally be positive. c. substitutes will normally be negative. d. complements will normally be infinite.
In the aggregate demand and aggregate supply model, the point where the aggregate demand curve crosses the long run aggregate supply curve, and the expected price level equals the actual price level, is known as what?