When two goods are related such that an increase in the price of one good decreases the quantity demanded of the other good, these goods are definitely
A) normal goods.
B) luxury goods.
C) complements.
D) substitutes.
E) inferior goods.
C
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Firms that are required to participate in affirmative action programs do end up hiring more minority employees
a. True b. False
According to the life-cycle theory of consumption, people tend to dissave during their retirement years.
Answer the following statement true (T) or false (F)
When the domestic currency is initially undervalued in a fixed exchange rate regime, the central bank must intervene in the foreign exchange market to ________ the domestic currency, thereby allowing the money supply to ________
A) purchase; decline B) sell; decline C) purchase; increase D) sell; increase
Instead of trying to balance the budget every year, it is easier to:
A. balance the budget over the business cycle. B. allow deficit spending only in times of economic downturn. C. allow surpluses to build during times of economic booms. D. All of these statements are true.