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If the Domestic Income Elasticity of the Demand for Imports

Question 29

Multiple Choice

If the domestic income elasticity of the demand for imports is 2, then:


A) a 1% change in domestic income will cause a 2% fall in imports.
B) a 2% change in domestic income will cause a 1% fall in imports.
C) a 1% change in domestic income will cause a 2% rise in imports.
D) a 2% change in domestic income will cause a 1% rise in imports.
E) a 1% change in domestic income will cause a .1% fall in imports.

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