If the demand for one good decreases when the price of another good increases, the two goods are ________ goods.
A. normal
B. inferior
C. complementary
D. substitute
Answer: C
You might also like to view...
If the marginal product of labor rises, the marginal cost of output
a. rises b. falls c. remains constant d. rises and then falls e. dampens
To say that a price ceiling is binding is to say that the price ceiling
a. results in a surplus. b. is set above the equilibrium price. c. causes quantity demanded to exceed quantity supplied. d. All of the above are correct.
Which statement is false?
A. Foreigners own a much greater percentage of the assets in the U.S. then they did in the early 1980s. B. Americans have assets of over $1 trillion in foreign countries. C. The dollar value of assets held by Americans in foreign countries has been declining since 1985. D. None of these statements are false.
Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 5 percent. If the Federal Reserve lowers the required reserve ratio to 3 percent, then the bank will now have excess reserves of
A) $0. B) $2,000. C) $3,000. D) $5,000.