The quantity demanded of good X falls by 20% and, in response, your income goes down by 10% and, the income elasticity of demand would be:

Explain how to calculate the slope of a non-linear function. What does the slope measure?

What will be an ideal response?

Assume a closed economy with fixed taxes and the marginal propensity to consume is equal to 0.9. What is the government spending multiplier?

A) 10 B) 9 C) 5 D) 1