Answer is physical count. Hope this helps. :)
Answer:
d. about 11.4 percent
Explanation:
% change in pound = ($2.05 - $1.95)/$1.95
= 5.1%
Effective financing rate = (1 + 6%)(1 + 5.1%) - 1
= 11.4%
Therefore, The effective financing rate for a U.S. firm that takes out a one-year, uncovered British loan is about 11.4 percent.
Answer:
The correct answer is a).
Explanation:
The income elasticity of demand refers to the percentual variation of quantity demanded of a certaing good in response to a percentual variation in income.
If the income elasticity of demand for medical care is 1.35,
<em>a. if income decreases by 1%, the quantity demanded for medical care decreases by 1.35%.</em> TRUE, this is what the definition implies.
<em>b. if the price of medical care increases by 1%, the quantity demanded for medical care decreases by 1.35%. </em>FALSE. In this elasticity, the sign is relevant. This income elasticity implies that changes in income and medical care expenses have the same sign.
<em>c. if the income of the average consumer increases by 1 dollar, the quantity demanded for medical care will increase by 1.35 units of care.</em> FALSE. The elasticity relates percentual variations, not absolute value variations.
<em>d. if income increases by 1%, the quantity demanded for medical care decreases by 1.35%.</em> FALSE. The same as point b.
