Since 1970, the poverty rate has largely fluctuated between:

For a normal good, the income and substitution effect work in the same direction. For an inferior good, the income and substitution effects work in opposite directions

Does this imply that the demand curve for an inferior good is upward sloping? Explain.

Referring to the graph above, a movement from point H to point I might represent ________

A) the increase in the inflation rate that occurs when the real interest rate rises B) the automatic response of monetary policy to an increase in the inflation rate C) an autonomous tightening of monetary policy D) any of the above E) none of the above