If the cross elasticity between two goods, X and Y, is positive, then we know they are
a. substitute goods
b. complementary goods
c. unrelated goods
d. inferior goods
e. normal goods
A
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If a bank has ________ rate-sensitive assets than liabilities, then ________ in interest rates will increase bank profits
A) more; a decline B) more; an increase C) fewer; an increase D) fewer; a surge
Demand is said to be elastic if a ______.
a. 3 percent price increase causes a 2 percent reduction of quantity demanded b. 5 percent price increase causes a 5 percent reduction of quantity demanded c. 5 percent price increase causes a 40 percent reduction of quantity demanded d. 10 percent price increase cause an 8 percent reduction of quantity demanded
Purchasing power parity exists when domestic currency
A. buys as many goods abroad as at home. B. buys more goods at home than abroad. C. is not convertible to a foreign currency. D. maintains a fixed exchange rate with a foreign currency.
Her marginal utility of her fifth pack of trading cards would be
Demand and Utility Schedules for Packs of Star Wars Trading Cards
A. $40.
B. $34.
C. $30.
D. $6.