The income elasticity of real money demand d. 3/4
Increase in real money demand = Increase in nominal money demand - Increase in inflation = 4% - 1% = 3%
Income elasticity of real money demand = % increase in real money demand / % increase in real income
= 3% / 4%
= 3/4
Income elasticity of demand is a monetary measure of how responsive the amount of demand for a very good or provider is to trade-in earnings. The formulation for calculating earnings elasticity of demand is the percentage change in quantity demanded divided by using the percent change in earnings.
In economics, the profits elasticity of call for is the responsivenesses of the quantity demanded an amazing to an alternate in patron profits. It is measured because of the ratio of the share exchange in the amount demanded to the proportion exchange in profits.
If the earnings elasticity of call for is more than 1, the best or carrier is taken into consideration a luxury and profits elastic. An amazing provider that has an earnings elasticity of call for between zero and 1 is considered an ordinary correct and income inelastic.
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Transfers Transfer payments.
Specialization Limiting production to fewer goods and services than consumed, perhaps those whose production entails lower opportunity cost.
Answer:
C
Explanation:
The president appoints a nominee to a judgeship, and then the Senate confirms the nominee.
Answer:
The correct answer is letter "D": vitamins and health foods that improve a taxpayer's general health.
Explanation:
The Internal Revenue Service (IRS) set deductions of medical expenses that exceed 10% of taxpayers' Adjusted Gross Income (AGI) for 2020. <em>Preventive care, surgeries, dental and vision assistance, psychologists and psychiatrists visits </em>are considered for deductions.
<em>Prescription medications, glasses, false teeth, </em>and <em>hearing aids </em>are also included but non-prescription drugs -<em>but insulin</em>- are not deductible. Thus, vitamins and healthy food prescriptions are not deductible.
Answer:
d. All of the above are true
Explanation:
External costs happen if during production or consumption of a good or a service there is a negative effect on another party. The existence of this can bring about market failure. In the presence of externalities social benefit costs are a combination of private costs and also external benefits of production.
All of the options a, n and c are true so d is the answer here.