Income elasticity of demand is defined as
A) the change in income divided by the change in quantity.
B) the change in price divided by the change in income.
C) the percentage change in demand divided by the percentage change in income.
D) the change in income multiplied by the change in quantity.
C
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The various signaling techniques __________ completely overcome the moral hazard problem in the case of the small borrower, so that small business loans are generally __________-term
A) can; long B) can; short C) cannot; long D) cannot; short
Henry has been thinking about purchasing a corporate bond but is afraid that the bond will lose value. He has decided to hold money instead. This is known as the
A. money balance demand for money. B. transactions demand for money. C. precautionary demand for money. D. asset demand for money.