During expansions,
a. sales fall, but profits rise.
b. sales and profits rise.
c. sales and profits fall.
d. sales rise, but profits fall.
Ans: b. sales and profits rise.
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When an asset is used as a universal yardstick that is used for expressing the worth of different goods and services, it is serving the function of a ________
A) unit of account B) medium of exchange C) store of value D) loanable fund
When a good has a unitary price elasticity, consumer expenditures for the good
A) change in the same direction as a price change. B) change in the opposite direction to a price change, but not necessarily by the same percentage as the price change. C) do not change when the price of the good decreases. D) change in the opposite direction and by the same percentage as any price change.