The number of computers bought increased by 20 percent when the price of on-line services declined by 10 percent. Assuming other factors are held constant, computers and on-line services are classified as:
a. complements.
b. unrelated goods.
c. substitutes.
d. social goods.
a
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Short-term loans between banks are called
A) federal funds. B) repurchase agreements. C) repos. D) discount loans.
In a proportional tax system each individual would pay the same dollar amount in taxes
a. True b. False Indicate whether the statement is true or false
The theory of comparative advantage suggests that trade should happen
a. between economies with small differences in opportunity costs of production. b. between economies with large differences in opportunity costs of production. c. between economies with large differences in specialization. d. between economies with small differences in specialization.
Okun's law shows that when the unemployment rate is below the natural rate,
A) inflation is higher than expected. B) inflation is lower than expected. C) output is below potential. D) output is above potential.