The reward offered to households to refrain from spending their income on current consumption and instead save their income is

Countries that borrow large amounts of money from foreign lenders prefer to:

A) hold an undervalued currency. B) hold an overvalued currency. C) have a high rate of unemployment. D) have a low rate of inflation. Suppose India borrows $10,000 from the U.S. at the beginning of 2012. The flexible exchange rate is 50 Indian rupees per dollar.

When the price of a good rises from $5 to $7 a unit, the quantity supplied increases from 110 to 130 units a day. The price elasticity of supply is _______. The supply of the good is _______

A. 60; elastic B. 10; elastic C. 0.5; inelastic D. 2; inelastic