If a 10 percent increase in income induced a group of consumers to reduce their yearly purchases of eggs by 5 percent, for these consumers,
a. the income elasticity of eggs equals approximately 1.05.
b. the income elasticity of eggs is 0.5.
c. eggs are a luxury good.
d. eggs are an inferior good.
D
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Which of the following will be observed if the Fed raises the reserve requirement?
a. The deposit expansion multiplier will fall b. The discount rate will decline c. The interest rate ceilings will fall d. Excess reserves will increase e. Money supply will increase
Which of the following characteristics does not contribute to the identification of specific market structures?
a. number of firms b. ease or difficulty of entry c. complementarity of goods d. control over price e. substitutability of goods
Which of the following would cause stagflation?
a. aggregate demand shifts right b. aggregate demand shifts left c. aggregate supply shifts right d. aggregate supply shifts left
A subset of the general population that holds an intense preference with respect to a particular government activity is called a
A) public-service group. B) special interest group. C) union. D) federation.