The income elasticity of demand measures
a. the relative certainty of future income
b. how elastic supply is compared to demand
c. the percent change in quantity demanded relative to the percent change in income
d. the percent change in income relative to the percent change in quantity demanded
e. how much income will stretch to make expected payments
C
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An increase in the supply of money will lead to a(n)
A) increase in equilibrium real GDP and an increase in equilibrium price level. B) increase in equilibrium real GDP and a decrease in equilibrium price level. C) decrease in equilibrium real GDP and an increase in equilibrium price level. D) decrease in equilibrium real GDP and a decrease in equilibrium price level.
The idea that similar foreign and domestic goods, or baskets of goods, should have the same price when priced in terms of the same currency is called
A) equity. B) purchasing power parity. C) efficiency. D) the tragedy of the commons.