The San Diego Zoo is an example of a club good

An increase in the real interest rate occurs when ________

A) monetary policy responds automatically to an increase in inflation B) expected inflation increases, relative to the nominal interest rate C) an increase in autonomous spending causes an increase in equilibrium output D) all of the above E) none of the above

For computers and other business equipment, small changes in business earnings tend to generate relatively large short-run changes in the demand for this equipment

In the long run, the responsiveness of demand for business equipment with respect to income changes tends to be: A) even more responsive. B) less responsive. C) equally responsive. D) none of the above