Author Question: A straight-line demand curve along which the price elasticity of demand equals 0 is one that A) ... (Read 86 times)

stephzh · **on:** Jun 29, 2018

A straight-line demand curve along which the price elasticity of demand equals 0 is one that

A) forms a 45 degree angle with the vertical axis.
B) forms a 60 degree angle with the horizontal axis.
C) is vertical.
D) is horizontal.

Question 2

If the Federal Reserve increases interest rates

A) the demand curve for U.S. dollars shifts rightward and the supply curve of U.S. dollars shifts leftward.
B) the demand curve for U.S. dollars shifts leftward and the supply curve of U.S. dollars shifts rightward.
C) the demand curve for U.S. dollars and the demand curve for European euros both shift rightward.
D) the demand curve for U.S dollars shifts leftward and the demand curve for European euros shifts rightward.