A change in household indebtedness will cause a movement along an existing aggregate demand curve.

Explain the economic rationale behind military alliances. Do new members always strengthen the alliance? Why or why not?

What will be an ideal response?

A simple linear demand function may be stated as Q = a - bP + cI where Q is quantity demanded, P is the product price, and I is consumer income

To compute an appropriate value for c, we can use observed values for Q and I and then set the estimated income elasticity of demand equal to: A) c(I/Q) B) c(Q/I) C) -b(I/Q) D) Q/(cI)