If the consumer has a great deal of time to adjust to an increase in the price of gasoline, which of the following is correct?
A) Quantity demanded will be relatively sensitive to the change in price.
B) The percentage change in quantity demanded will be quite small relative to the percentage change in price.
C) The percentage change in price will be quite large relative to the percentage change in quantity demanded.
D) Demand will tend to be unitary elastic as it is for most goods in the long run.
A
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Suppose purchasing power parity holds. If the price level in the United States is 100 dollars per good and the price level in Japan is 250 yen per good, then the nominal exchange rate is ________ yen per dollar
A) 0.25 B) 0.4 C) 2.5 D) 4.0
Regarding money, what matters most?
A) that is exists. B) that its quantity is known. C) that coins are available. D) that its quantity is stable.