Which of the following pairs of goods is likely to have a negative cross-price elasticity of demand?
A) pancakes and syrup B) orange juice and grapefruit juice
C) peanuts and cat food D) hot dogs and hamburgers
A
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Which of the following are policy instruments available to the Fed as it tries to achieve its macroeconomic goals?
i. government expenditure on goods and services and taxes ii. the government budget deficit or surplus iii. changes in the federal funds rate A) iii only B) ii and iii C) ii only D) i and ii E) i and iii
Changes in the price of good A lead to a change in:
A. the quantity demanded of good A. B. demand of good B. C. the quantity demanded of good B. D. demand of good A.
If a consumer is relatively insensitive to changes in the price of a good, then the consumer's demand for the good is
A) elastic. B) unit elastic. C) inelastic. D) perfectly elastic.
In 1981, U.S. policy makers predicted a balanced budget as: a. the budget included a decrease in defense expenditures
b. the budget included an increase in the tax rate. c. the budget included an increase in unspecified government spending. d. the growth in GDP was expected to be large enough to lead to an increase in tax revenues despite the tax cut. e. the growth in GDP was expected to be small enough to require less government spending.