John wants to buy a new lawn mower. He can either buy it in the US and pay $500 or buy it in Mexico and pay 8188 Mexican Pesos. At the exchange rate of 1 Mexican Peso=0.771US$, ignoring any other costs, he would

A law that requires the money supply to grow by a fixed percentage each year would eliminate

a. the time inconsistency problem, but not political business cycles. b. the political business cycle, but not the time inconsistency problem. c. both the time inconsistency problem and political business cycles. d. neither the time inconsistency problem nor political business cycles.

If quantity demanded falls by 25 percent when price rises by 50 percent, demand is said to be:

A. unit elastic. B. elastic. C. inelastic. D. proportional.