An international agency uses the prices of iPads in different countries to compute the exchange rate between the currencies of these countries. Which of the following measures is based on a similar idea?

Demand is income elastic if

A) a large percentage increase in income results in a small percentage increase in quantity demanded. B) a small percentage increase in income results in a large percentage increase in quantity demanded. C) an increase in income does not affect the quantity demanded. D) the good in question has close substitutes.

A multinational agency that specializes solely in making loans to promote long-term development and growth in developing countries is the

A) Federal Reserve System. B) World Bank. C) International Monetary Fund. D) International World Fund.