If the demand for one good decreases when the price of another good decreases, the two goods are ________ goods.
A. normal
B. inferior
C. complementary
D. substitute
Answer: D
You might also like to view...
The following table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase.CPUGHzTotal BenefitMarginal BenefitTotal CostsMarginal Costs2.0$1,000 $900 2.5$1,400 &1003.0 $300$1,200 3.5$1,900 &1,500 4.0$2,000 &400Application of the Cost-Benefit Principle would lead one to purchase a ________ computer.
A. 2.5GHz B. 2.0GHz C. 3.0GHz D. 4.0GHz
If real GDP is $4 billion, the price level is 1.25, and the nominal money stock is $500 million, then velocity is
A) 0.1. B) 1. C) 10. D) 100.
The economic expansion which began in March 1991 was unusual in that
A) the first year and a half of the expansion was very weak and unemployment did not peak until 16 months after the trough. B) the inflation rate decelerated from 1993 to 1997 rather than accelerating. C) monetary policy was tightened substantially in 1994 even though there was no evidence of accelerating inflation. D) all of the above.
Goldsmiths are considered to be the forerunners of modern banks because they: a. had safes to keep gold secure
b. issued gold coins. c. created money by lending out gold reserves. d. created legal tender. e. verified the quality of money.