Indifference curves for perfect substitutes must be parallel lines with a slope of negative one
Indicate whether the statement is true or false
False. Indifference curves for perfect substitutes are parallel lines, but the slope is not necessarily negative one.
You might also like to view...
Friedman's theory of money demand differs from Keynes' in that
a. Friedman assumes that the demand for money is highly elastic while Keynes assumes money demand is inelastic. b. Friedman assumes that the money demand function is highly stable while Keynes assumes it is unstable. c. Friedman assumes that there is only a speculative demand for money while Keynes also considers the precautionary and transactionary demands for money. d. Friedman assumes that the proportion of income held in the form of money is constant while Keynes believes it varies. e. both b and d.
Under "trickle down", additional economic activity will benefit the poor
Indicate whether the statement is true or false