The income elasticity of demand is ________ for a normal good and ________ for an inferior good
A) positive; positive
B) positive; negative
C) negative; positive
D) negative; negative
B
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If a currency rapidly depreciates, what are the possible negative results to the economy of using contractionary monetary policy to address the depreciation?
What will be an ideal response?
An import quota will ordinarily raise the price of the good in the importing country
a. True b. False Indicate whether the statement is true or false
GDP is used as the basic measure of a society's economic well-being. A better measure of the economic well-being of individuals in society is
a. saving per person. b. GDP per person. c. government expenditures per person. d. investment per business firm.
If the marginal propensity to consume is 0.8, and aggregate expenditure initially increases by $100 million, then the aggregate demand curve will shift outwards by $500 million, holding the price level constant
Indicate whether the statement is true or false