If a 10 percent increase in income leads to a 5 percent decrease in the demand for a good, the income elasticity of demand equals ________ and the good is ________ good

Refer to Figure 19-3. At what level should the Thai government peg its currency to the dollar to make Thai exports cheaper to the United States?

A) less than $.03/baht B) equal to $.03/baht C) greater than $.03/baht D) $1/baht

Other things being constant, if the U.S. real rate of interest exceeds that of its trading partners, we expect

A) political instability in the United States. B) a worsening of the U.S. balance of payments. C) an appreciation of U.S. currency. D) that a "dirty float" will emerge.