If the Income Elasticity of Demand for a Good Is

question 11

True/False

If the income elasticity of demand for a good is negative, then the good must be an inferior good.

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Definitions:

Chinese Yuan

The official currency of the People's Republic of China, used as a medium of exchange in mainland China.

Inflation

The rate at which the general level of prices for goods and services rises, eroding purchasing power.

Fixed Exchange-Rate System

A monetary system in which the value of a nation's currency is fixed to the value of a single currency, a group of currencies, or a tangible asset such as gold.

Foreign-Exchange Reserves

These are assets held by a central bank in foreign currencies, used to back its liabilities and influence monetary policy.