If it is difficult to substitute for a good in the short run, but easy in the long run, then
A) the elasticity of demand is more elastic in the short run.
B) the elasticity of demand is more elastic in the long run.
C) the good is an inferior good.
D) elasticity changes along the demand curve.
B
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In a study session, your friend says, "Demand is elastic if the percentage change in the price exceeds the percentage change in quantity demanded." Is your friend correct?
What will be an ideal response?
When the yield curve is downward-sloping,
A) short-term yields are higher than long-term yields. B) long-term yields are higher than short-term yields. C) the bond market is anticipating the U.S. Treasury may default on its obligations. D) the inflation rate is expected to rise.
An expansionary monetary policy will
A. increase imports. B. decrease exports. C. increase a current account deficit. D. decrease a capital account surplus.
A closed economy
a. does not engage in international trade of goods and services. b. does not engage in international borrowing or lending. c. both A and B d. engages in international borrowing and lending.