Homothetic goods are neither necessities nor luxuries, but rather lie on the borderline between them.
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Answer the following statement true (T) or false (F)
True
Rationale: Homothetic goods are those for which the marginal rates of substitution are constant along any ray emanating from the origin. As a result, homothetic tastes represent the borderline tastes between necessary and luxury goods.
Economics
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Refer to Table 18.1. M2 in this simple economy equals
A) $1,050. B) $4,050. C) $4,550. D) $5,100.
Economics
A worldwide system of fixed exchange rates was organized and maintained under the International Monetary Fund
A) in the three decades before World War I. B) in the years between the world wars. C) from the end of World War II until the early 1970s. D) from the early 1960s to the late 1980s.
Economics