A 10 percent increase in income brings about a 15 percent decrease in the demand for a good. What is the income elasticity of demand and is the good a normal good or an inferior good?

Negative autocorrelation in the change of a variable implies that

A) the variable contains only negative values. B) the series is not stable. C) an increase in the variable in one period is, on average, associated with a decrease in the next. D) the data is negatively trended.

According to economist Milton Friedman, a major reason for macroeconomic instability is due to:

A. Tax changes by the Federal government B. Spending reductions by the Federal government C. The discretionary monetary policy of the Federal Reserve D. The issuance of bonds by the U.S. Treasury Department