If a currency has a fixed exchange rate, it is not subject to the forces of supply and demand

Which of the following supports the skeptics doubts about the idea that a "New Economy" had emerged in the late 1990s?

A) In early 2000, investment in computer equipment turned to negative growth. B) A drop in productivity growth in 2001 was followed by a bounce-back of productivity growth in early 2002. C) The opinion of Alan Greenspan, Chairman of the Federal Reserve System, concerning the pace at which technological innovations are being applied D) None of the above.

If the percentage increase in price is 15 percent and the value of the price elasticity of demand is -3, then quantity demanded

A) will increase by 45 percent. B) will increase by 5 percent. C) will decrease by 45 percent. D) will decrease by 5 percent.