If an increase in the price of Good A causes an increase in the demand for Good B, Goods A and B are said to be substitutes
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose a bank has assets of $500 million and capital of $100 million. Its return on assets is -3%. What is its leverage ratio? What is its return on equity?
What will be an ideal response?
A property tax is equivalent to a tax on income
a. True b. False
When a monopoly is regulated it is required to sell lower output at a lower price
a. True b. False Indicate whether the statement is true or false
If a country's imports are very important in determining the volume of exports from its trading partners, then:
a. the simple spending multiplier understates the true value of the multiplier. b. the spending multiplier will be equal to 1/marginal propensity to import. c. the simple spending multiplier is an accurate measure of the multiplier effect. d. the simple spending multiplier will be equal to 1/MPC e. the spending multiplier will be equal to 1/marginal propensity to save.