Donuts and coffee are complements. When the price of a donut increases, the demand for coffee ________ and the cross elasticity of demand for coffee with respect to the price of a donut is ________
A) decreases; negative
B) increases; negative
C) increases; positive
D) decreases; positive
A
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A situation in which both players can adopt moves such that each player's move is its most profitable response to the move of the other is the
a. prisoner's dilemma. b. Nash equilibrium. c. maximin criterion. d. tacit collusion.
The federal government buys Treasury bonds in the open market when it incurs a budget deficit
a. True b. False Indicate whether the statement is true or false
The organizational structure where organizations are divided by products or divisions
a. functional b. line and staff c. product d. matrix
If the Fed buys $5 million in government bonds, how much will the money supply change?
A. It will increase by $5 million. B. It will increase by more than $5 million. C. It will decrease by $5 million. D. It will decrease by more than $5 million.