Suppose we find that the cross elasticities between two goods are relatively high, and their cross elasticities with goods outside the market are zero. From this we can conclude that these two goods
a. are produced by monopolies
b. have relatively high prices
c. are unrelated
d. have inelastic demand curves
e. belong to the same market
E
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Indicate whether the statement is true or false
Which function of money allows for comparison shopping?
A) medium of exchange B) unit of accounting C) store of value D) standard of deferred payment
The net worth of a bank
A. determines the level of bank loans possible. B. is determined by subtracting liabilities from assets. C. is determined by subtracting assets from liabilities. D. can never be a negative value.
If the GDP gap is $400 billion and AS is upward-sloping, an effective fiscal policy would be to increase aggregate demand by $400 billion.
Answer the following statement true (T) or false (F)