If Figure 4-8 above is to show the result of a "fully accommodating" monetary policy following a shift of the IS curve from IS0 to IS1, what is the initial level of real income and interest rate before these changes?

The colonies as a whole had a significant commodity trade deficit with England. In order to finance this deficit the colonies relied on all of the following sources of income except

a. a commodity trade surplus with Southern Europe. b. the sale of colonial shipping services. c. mining of gold and silver that were used to make Colonial coins. d. British government spending in the colonies.

Suppose the income elasticity of demand for a private college education is equal to 1.5 . This means that

a. every $1 increase in income provides an incentive for a $1.50 increase in expenditures on private college education b. every $1.50 increase in income provides an incentive for a $1 increase in expenditures on private college education c. a 10 percent increase in income causes a 15 percent increase in the demand for a private college education d. a 15 percent increase in income causes a 10 percent increase in the demand for a private college education e. a 10 percent decrease in private college tuition will have a large enough income effect to increase spending on private college education by 15 percent