The cross-price elasticity of demand between good X and good Y is -3. Given this information, which of the following statements is true?
A. The demand for goods X and Y is elastic.
B. Goods X and Y are complements.
C. Goods X and Y are substitutes.
D. The demand for goods X and Y is income elastic.
Answer: B
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What will be an ideal response?
One example of thinking at the margin is:
a) determining whether it is better to spend your savings on a new CD player or on a television b) deciding whether the benefit of working two extra hours per day is worth the sacrifice of study time c) putting all your money in a savings account because the interest rates are so high d) deciding to buy a car you don't really like because it is significantly less expensive than the one you want
Commercial banks increase the supply of money when they purchase either personal IOUs or government bonds from businesses and households.
Answer the following statement true (T) or false (F)
Regulation Q put a ceiling on
A) bank loan rates. B) loan rates at all depository institutions. C) deposit rates. D) the proportion of a savings-and-loan's assets made up of loans other than mortgages.