If a good has an absolute price elasticity of 2, the demand for the good is
A) unit elastic.
B) inelastic.
C) perfectly elastic.
D) elastic.
D
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________ in the expected future domestic exchange rate causes the demand for domestic assets to ________ and the domestic currency to depreciate, everything else held constant
A) An increase; increase B) An increase; decrease C) A decrease; increase D) A decrease; decrease
Refer to Scenario 5.2. Randy's expected expense for his car is
A) $20,000. B) $19,000. C) $18,000. D) $17,500. E) $15,000.
The value of a country's exports is listed in its balance of payments account as a(n)
a. credit b. debit c. payment d. investment e. unilateral transfer
Suppose an economy had an inflation rate of 7 percent last year. This has decreased to 6 percent this year. This means that the economy is: a. suffering from hyperinflation. b. experiencing deflation. c. experiencing disinflation
d. experiencing a wage-price spiral. e. experiencing a decrease in real wage.