Owners of a coffee shop finds that they can sell 150 donuts a day when the price of a donut is $1.20. When they price donuts at $1, they sell 170 donuts. The absolute value of the price elasticity of demand for donuts is

Assume an economy with an upward-sloping aggregate supply curve and an MPC of .80 . An increase in investment spending of $50 billion will most likely increase total income by

a. $200 billion. b. $40 billion. c. more than $200 billion. d. more than $50 billion but less than $250 billion.

Portfolio diversification eliminates all of the ___________ from a portfolio

A. risk B. diversifiable risk C. nondiversifiable risk D. risk from business cycle fluctuations