If the price of an inferior good falls, the income effect will result in households buying ________ of the good and the substitution effect will result in households buying ________ of the good.

Refer to Table 4-6. The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion. What are the equilibrium price and quantity (in thousands) for Aunt Maud's Lotion?

A) $30 and 20 thousand B) $60 and 30 thousand C) $20 and 60 thousand D) $20 and 30 thousand

To stay with a fixed exchange rate system, a nation that is losing most of its international reserves will have no choice but to

A) ask for or declare a devaluation. B) ask for or declare a revaluation. C) let its currency depreciate. D) let its currency appreciate.