Assume that we have a demand curve of the form: log(Q) = a - b log(P) + c log(I) where Q = quantity, P = price, I = income, and a, b, and c are positive constants
The income and price elasticities for the demand curve represented above are always A) equal to one.
B) equal to zero.
C) equal (i.e., income elasticity always equals price elasticity).
D) constant but not necessarily equal to one another.
D
Economics
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Which of the following determines the amount of money the banking system as a whole can create?
A) the limit on profits by banks imposed by the U.S. Congress B) the quantity of vault cash held by banks C) the gold reserves held by the Federal Reserve D) the quantity of bank reserves
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What are some of the problems with using the leading indicators to forecast recessions? If you were a policymaker, would you rely on them?
What will be an ideal response?
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