If the demand for salad dressing increases when the price of lettuce decreases, the cross-price elasticity of demand between salad dressing and lettuce will be ________ because these two goods are ________.
A. equal to 1; inelastic
B. negative; substitutes
C. negative; complements
D. zero; inferior
Answer: C
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Thrift institutions
A) include commercial banks and investment firms. B) include credit unions but not savings and loan associations. C) do not offer transaction deposits. D) receive most of their funds from the public's savings deposits.
Which of the following could explain an increase in the equilibrium wage rate for a particular job?
a. a decrease in the amount of training needed to perform this job b. an increase in the amount of risk associated with this job c. a decrease in the amount of risk associated with this job d. an improvement in the working conditions associated with this job e. increased migration of workers to this geographic location
If net taxes were lowered from $5,000 to $1,000 . the marginal propensity to consume is 0.75, and autonomous consumption spending is $10,000 . by how much would consumption increase?
a. $3,000 b. $1,250 c. $7,500 d. $3,750 e. $750
The unemployment compensation program:
A. makes recessions more severe. B. makes recession less severe. C. makes recessions more severe and inflationary episodes less severe. D. makes recessions less severe and inflationary episodes more severe.