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if a 10% decrease in the price of product A brings about a 3% increase in the sales of product B, then
a. product A and B are complementary
b. the cross elasticity of demand between these two products is positive
c. product A and B are substitutes
d. the demand for these products is inelastic
e. the total revenue earned from product A will decrease
Question 1: Critically analyse the costs of inflation. Which of these items is likely to have encouraged many governments in their adoption of inflation as public enemy number
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One of our clients is a major homebuilder in the Midwest. This company believes that sales of their new homes are highly correlated with business cycles in the overall US economy.
Derive the following equilibrium for the IS-LM model:
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