If the elasticity of demand for cigarettes is 0.4, then an increase in the price of a pack of cigarettes from $1.00 to $1.30 would reduce quantities demanded by about

How might real business cycle theorists respond to evidence of procyclical inflation?

What will be an ideal response?

The practice of buying a foreign currency with one currency then reselling it to buy yet another currency

a. creates disequilibrium in the foreign exchange market b. is illegal in the U.S. c. is arbitrage d. is impossible because the foreign exchange market creates general equilibrium among exchange rates e. leads to mutually inconsistent exchange rates