Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family,
A) hamburgers and hot dogs are normal goods. B) hamburgers and hot dogs are substitutes.
C) hamburgers and hot dogs are complements. D) hamburgers and hot dogs are inferior goods.
B
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A reverse repurchase agreement of government securities by the Fed
A) permanently increases bank reserves. B) temporarily increases bank reserves. C) permanently reduces bank reserves. D) temporarily reduces bank reserves.
Everything that consumers purchase during a period is included as part of consumption when calculating GDP
a. True b. False
It is true of externalities that they
a. arise when all costs, social and private, are included in production cost. b. are always beneficial. c. are always detrimental. d. None of the above are correct.
Vertical equity refers to the notion that individuals at all levels should be taxed equally
a. True b. False Indicate whether the statement is true or false