Recall the four types of goods. Are national defense and a patented invention the same type of good? Briefly explain

When prices rise, what happens to income?

a. It goes down. b. It buys less. c. It rises to meet prices. d. It is used to buy different things.

We expect PPP to hold better

A) for annual data than monthly data. B) for high-inflation countries. C) in the long run. D) All of the above.