This topic contains a solution. Click here to go to the answer

Author Question: Explain the difference between a normal good and an inferior good. What will be an ideal ... (Read 45 times)

MirandaLo

  • Hero Member
  • *****
  • Posts: 538
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
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
Thanks for the timely response, appreciate it


rachel

  • Member
  • Posts: 323
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

For a complete list of videos, visit our video library