An increase in the price of good B caused an increase in the demand for good C. This indicates that goods B and C are
A) complements.
B) substitutes.
C) neither substitutes nor complements.
D) normal goods.
B
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Adam Smith noted in 1776 that
A. the wealth of nations comes from the money the nations have accumulated. B. the wealth of nations comes from the gold the nations have accumulated. C. the wealth of nations comes from the resources that produce the nation's goods and services. D. the problem of scarcity had been licked.
A temporary increase in government spending that leads to only a small decline in lifetime wealth likely shifts the output demand curve to the
A) right by more than the rightward shift in output supply. B) right by less than the rightward shift in output supply. C) left by more than the leftward shift in output supply. D) left by less than the leftward shift in output supply.
Decisions to reduce the money supply are made by ________ and are an example of ________ policy.
A. the Federal Reserve; fiscal B. the President; monetary C. Congress; monetary D. the Federal Reserve; monetary
If Alyssa buys a cup of chai at Starbucks, her money serves as a
A. unit of accounting. B. standard of deferred payment. C. store of value. D. medium of exchange.