Suppose a 4 percent increase in income results in a 2 percent decrease in the quantity demanded of a good. Calculate the income elasticity of demand for the good and determine what type of good it is

The vicious circle of poverty is the trap in which the LDC is too poor to save and therefore it cannot invest and remains poor

a. True b. False Indicate whether the statement is true or false

Consumption is $141 billion, planned investment is $15 billion, and saving is $15 billion in a private, closed economy. At this level:

A.  Actual investment does not equal planned investment B.  There will be unplanned increases in inventories C.  There will be unplanned decreases in inventories D.  The economy is in equilibrium