Economists are fond of calculating measures of elasticity.If we calculate the income elasticity of money as the %$\Delta$M/%$\Delta$PY, where M is the quantity of money held and PY is nominal income, would you suspect the coefficient to be positive, negative or zero? Will the absolute value be greater or less than 1? Be sure to explain your choices.

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The Answer of Economists are fond of calculating measures of elasticity.If we calculate the income elasticity of money as the %$\Delta$M/%$\Delta$PY, where M is the quantity of money held and PY is nominal income, would you suspect the coefficient to be positive, negative or zero? Will the absolute value be greater or less than 1? Be sure to explain your choices.

Economists Are Fond of Calculating Measures of Elasticity Δ\DeltaΔ M Δ\DeltaΔ PY, Where M Is the Quantity of Money Held and the Income

Economists Are Fond of Calculating Measures of Elasticity $\Delta$ M $\Delta$ PY, Where M Is the Quantity of Money Held and the Income