The demand curve in the figure above illustrates a product whose demand has a price elasticity of demand equal to
A) zero at all prices.
B) infinity.
C) one at all prices.
D) a different amount at different prices.
Question 2
According to the intertemporal substitution effect, when the price level increases, the interest rate
A) rises and the quantity of real GDP demanded increases.
B) rises and the quantity of real GDP demanded decreases.
C) falls and the quantity of real GDP demanded decreases.
D) is not affected.
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