An inferior good is one that consumers buy in smaller quantities when the price of that good rises.

Demand is unit elastic when

A) the slope of the demand curve is -1. B) a shift of the supply curve leads to no change in price. C) a shift of the supply curve leads to an equal shift of the demand curve. D) a change in the price of the product leads to no change in the total revenue.

Zero lower bound refers to the fact that

A) the government budget deficit must be zero in the long run. B) the lowest possible level of the current account deficit is zero in the long run. C) the inflation rate can never decline below zero. D) nominal interest rates cannot fall below zero.