Assume that goods X and Y are not Giffen goods. If the price of good X falls, a consumer will definitely
a. consume more of good X because her budget constraint has rotated outward.
b. consume more of good X because her budget constraint has shifted outward.
c. consume more of good Y because her budget constraint has rotated outward.
d. consume more of good Y because her budget constraint has shifted outward.
a
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In Zimbabwe, at the height of the feedback loop:
A. prices were increasing by 7.6 billion percent per month. B. real GDP was increasing by 7.6 billion percent per month. C. the money supply was increasing by 7.6 billion percent per month. D. the velocity of money was increasing by 7.6 billion percent per month.
The Marshall-Lerner condition holds that a country's current account balance will ________ in response to a real ________ in a nation's currency if ________
A) improve; depreciation; sum of the price elasticities of export and import demand exceeds 1 B) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 1 C) improve; appreciation; sum of the price elasticities of export and import demand exceeds 1 D) improve; appreciation; sum of the price elasticities of export and import demand exceeds 0 E) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 0