If a consumer is compensated for the income effect that occurs when the price of a good increases, then his demand curves can never slope upward
What will be an ideal response?
True. The demand curve would only include the substitution effect. Even for Giffen goods, dq/dp is negative holding utility constant.
Economics
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If the financial innovations such as ATM machines make money demand less elastic than it was before, then
a. the LM curve will become steeper. b. the LM curve will become flatter. c. both the IS and LM curves will become flatter. d. the LM curve will shift to the left.
Economics
When net unilateral transfers are added to the net exports of goods and services, the result is called the
a. merchandise trade balance b. official reserve transactions account c. balance of payments d. balance on capital account e. balance on current account
Economics