If two goods x and y are perfect complements, then if the price of x falls, the entire change in the demand for x is due to the income effect.
Answer the following statement(s) true (T) or false (F)
Answer: True.
You might also like to view...
Money serves as a medium of exchange when:
A. it is a basic measure of economic value. B. it is a means of holding wealth. C. it is used to purchase goods and services. D. there is direct trade of goods and services.
Using sharp increases or decreases in taxes rather than deficits is a better way to prevent distortions in an economy
Indicate whether the statement is true or false
In Figure 3-5 above, saving is positive at
A) point J. B) point K. C) point L. D) all of the above.
The opportunity cost of holding excess reserves will be lower at an 8 percent federal funds rate in comparison to a 10 percent federal funds rate
a. True b. False Indicate whether the statement is true or false