A good is classified as inferior if
a. consumers buy less when the price rises.
b. consumers buy less when income rises.
c. consumers buy less when the price falls.
d. consumers buy more when income rises.
B
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Relative to the yen, from 2007-2012 the U.S. dollar
A) appreciated due to an increase in the interest rate differential and expectations of a higher future exchange rate. B) appreciated due to a decrease in the interest rate differential and expectations of a lower future exchange rate. C) depreciated due to an increase in the interest rate differential and expectations of a higher future exchange rate. D) depreciated due to a decrease in the interest rate differential and expectations of a lower future exchange rate.
Which of the following is not assumed to be constant along a money demand curve?
a. The price level b. The interest rate c. Real GDP d. Nominal GDP e. Individual's tastes and preferences