Suppose a 10% increase in the price of steak reduces the consumption of steak by 30%. Such a price rise will induce households to spend
A. more of their income on steak.
B. the same amount on steak as before.
C. less of their income on steak.
D. more on products that are complementary with steak.
Answer: C
Economics
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The 12 regional Fed banks do all of the following except:
A. Clear checks between private banks. B. Lend money to individuals. C. Provide currency to banks. D. Hold bank reserves.
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Which of the following is an argument in favor of interventionist trade policies?
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Economics