Which of the following is most likely to have a negative income elasticity of demand?
a. Overseas vacations
b. Fancy restaurant meals
c. Day-old bakery products at a discount
d. New cars
c
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The price elasticity of demand for Red Delicious apples, a certain type of apple, is likely
A) elastic. B) inelastic. C) perfectly elastic. D) perfectly inelastic. E) unit elastic.
In comparison to the oversimplified formula for the multiplier, the real-world multiplier is
a. lower. b. higher. c. almost equal to it. d. higher if taxes are included.
Any reserves held by a bank above the amount of minimum legal reserves are called
A. total reserves. B. required reserves. C. fiat money. D. excess reserves.
Steve uses $300 from his paycheck to pay off his credit card balance. Based on this information:
A. Steve's saving has decreased by $300. B. Steve's saving has increased by $300. C. Steve has a capital loss of $300. D. Steve's wealth is unchanged.