Tomas increased his consumption of potato chips when the price of pistachios increased. For Tomas, potato chips and pistachios are
A) substitutes.
B) both inferior goods.
C) complements.
D) both luxury goods.
Answer: A
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The price of borrowing is known as the:
A. equilibrium price. B. interest rate. C. transaction cost. D. None of these is true.
A strong dollar helps U.S. exporters and hurts importers
a. True b. False Indicate whether the statement is true or false
When a tax is placed on the sellers of a product, buyers pay
A. more, and sellers receive more than they did before the tax. B. more, and sellers receive less than they did before the tax. C. less, and sellers receive more than they did before the tax. D. less, and sellers receive less than they did before the tax.
The money supply in Macroland is currently 2,500, bank reserves are 200, currency held by public is 500, and banks' desired reserve-deposit ratio is 0.10. Assuming the values of the currency held by the public and the desired reserve-deposit ratio do not change, if the Central Bank of Macroland wishes to increase the money supply to 3,000, then it should conduct an open-market ________ government bonds.
A. sale of 50 B. sale of 500 C. purchase of 250 D. purchase of 50