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

Economics

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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?

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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

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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.

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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

Economics