The demand for money increases and the demand for money curve shifts rightward if
A) the real interest rate increases.
B) the inflation rate increases.
C) the nominal interest rate increases.
D) the price level falls.
E) real GDP increases.
E
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Which of the following statements is true?
a. If the income elasticity of demand is less than zero, the good is an inferior good. b. Only if the demand curve is vertical will sellers raise the price by the full amount of a tax. c. Two goods are substitutes if the cross-elasticity of demand coefficient is positive. d. A price elasticity of supply coefficient equal to 1.5 means the product exhibits an elastic supply and a 10 percent increase in the price will increase the quantity supplied by 15 percent. e. All of these.
Given the price of a good or service, what determines how much a person is willing to pay for that good or service?
A) marginal utility B) total utility C) the substitution effect D) average utility