For consumers, chocolate chip cookies and doughnuts are substitutes. So, an increase in the price of chocolate chip cookies will lead to a rightward shift in the demand curve for doughnuts
Indicate whether the statement is true or false
TRUE
You might also like to view...
The best case for intermediate targeting on monetary aggregates is where the
a. LM schedule is flat and the money demand function is stable. b. IS schedule is flat and the level of investment is stable. c. LM schedule is steep and the money demand function is stable. d. IS schedule is steep and the money demand function is stable.
The United States 2007 Gross-Public-Debt to GDP ratio is
a. similar to the ratios in most of the OECD countries b. considerably higher than it is in most OECD countries c. considerably lower than it is in most OECD countries d. considerably higher than it was in 1990 e. considerably lower than it was in 1990
What is the inflation tax, and how might it explain the creation of inflation by a central bank?
Economic rent is the payment made to a factor of production above the amount necessary to induce any of that factor to be supplied at its present employment.
Answer the following statement true (T) or false (F)