When the price elasticity of demand for a good equals
A) 0, the demand curve is vertical.
B) 0, the demand curve is horizontal.
C) 1, the demand curve is vertical.
D) 1, the demand curve is horizontal.
A
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Why was so much of the "boom" of the 2000s concentrated in the housing and real estate sectors?
A) The Fed attempted to engineer an increase not only in real GDP, but in particular further the expansion of those sectors. B) The Community Reinvestment Act (CRA) called for banks to offer subprime loans to at-risk customers. C) People were encouraged to "flip" houses because the low interest and rate and easy lending practices made it appear profitable to do so. D) For all of the above reasons.
Suppose that the price index in 1999 was 170 and your salary was $44,000. Suppose in 2016 the consumer price index will be 290. What salary will you have to earn in 2016 in order to equal your 1999 real income?
A) $66,000 B) $77,647 C) $75,059 D) $83,209