This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain the difference between a normal good and an inferior good. What will be an ideal ... (Read 39 times)

MirandaLo

  • Hero Member
  • *****
  • Posts: 538
on: Jun 29, 2018
Explain the difference between a normal good and an inferior good.
 
  What will be an ideal response?

Question 2

Does the quantity theory correctly predict the effects of money growth on inflation?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mohan

  • Sr. Member
  • ****
  • Posts: 362
Reply #1 on: Jun 29, 2018
Answer to Question 1

A normal good is something for which the demand increases when income rises and the demand decreases when income falls. An inferior good is something for which the demand decreases when income rises and the demand increases when income falls.

Answer to Question 2

The long-run historical and international evidence on the relationship between money growth and the inflation rate support the quantity theory. The data suggest a marked tendency for nations with high money growth rates to have high inflation rates.


MirandaLo

  • Member
  • Posts: 538
Reply 2 on: Jun 29, 2018
:D TYSM

yeungji

  • Member
  • Posts: 319
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Maintenance of normal blood glucose levels. Maintenance of normal blood glucose levels.
What makes tea so good What makes tea so good
The normal and constricted airway. The normal and constricted airway.
Normal combustion is a smooth, controlled burning of the air–fuel mixture. Normal combustion is a smooth, controlled burning of the air–fuel mixture.
Normal and enlarged tonsils. Normal and enlarged tonsils.
Electrophoresis gel in a densitometer. SPE densitometry showing a normal pattern. Electrophoresis gel in a densitometer. SPE densitometry showing a normal pattern.
Video: Replication of DNA and Chromosomes/ How do cells replicate their DNA? (Animation) no Audio

For a complete list of videos, visit our video library