Good A has an income elasticity equal to -1.0 and a cross price elasticity with respect to Good B of 0.9 . Then:
a. Good A is an inferior good and Goods A and B are substitutes.
b. Good A is an inferior good and Goods A and B are complements.
c. Good A is a normal good and Goods A and B are substitutes
d. Good A is a normal good and Goods A and B are complements.
a
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The commercial banks on Sunny Island have checking deposits of $4 million, reserves of $600,000, and loans of $2.4 million. The desired reserve ratio is 10 percent. The banks have ________ of desired reserves and ________ of excess reserves
A) $600,000; $0 B) $400,000; $200,000 C) $400,000; $600,000 D) $600,000; $200,000
By 2010, the __________ made up more than three quarters of the United States' economy, as measured by its share of the Gross Domestic Product (GDP).
A. quaternary sector B. no single economic sector holds such away in the US economy C. primary sector D. tertiary sector E. secondary sector
The program that redistributes the most money is:
A. the Department of Housing and Urban Development's housing programs. B. Supplemental Security Income. C. the Social Security system. D. Aid to Families with Dependent Children.
The price of a new model of iPad tends to fall significantly a year after it is introduced. Suppose Jane bought an iPad as soon as it was introduced (a year ago) and paid a premium price for it. Now she wants to buy an iPad cover. Which of the following should she consider before buying the new accessory?
A. The price of replacing her iPad, the price of the iPad cover, and the benefit she'll receive from using the iPad cover B. The price of the iPad cover and the benefit she'll receive from using the iPad cover C. The price she paid for her iPad, the price of the iPad cover, and the benefit she'll receive from using the iPad cover D. The price of the iPad cover had she bought it with the iPad, the current price of the iPad cover, and the benefit she'll receive from using the iPad cover