If the cross-price elasticity is positive, we can conclude that the two goods are ______ because the price of one good and the demand for the other move in the same direction.
a. complements
b. substitutes
c. counterparts
d. identical
b. substitutes
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Suppose a $30 billion increase in government purchases increased GDP by $120 billion, what is the value of the MPC?
a. 4.00 b. 0.75 c. 0.25 d. 0.50 e. 0.33
Using a figure describing both the U.S. money market and the foreign exchange market, analyze the effects of a temporary increase in the European money supply on the dollar/euro exchange rate
What will be an ideal response?
Investment banks are vulnerable because
A) the maturity of their liabilities is less than the maturity of their assets. B) the maturity of their assets is less than the maturity of their liabilities. C) they tend to be underleveraged. D) they tend to primarily hold short-term assets.
Which of the following mergers would most likely be challenged by the Federal Trade Commission?
A. one oil refinery in the U.S. and another oil refinery in Canada B. two restaurants in a large metro area C. two largest wireless service providers in the U.S. wireless communication industry D. an automaker and an insurance company