The relationship between a change in the price of a complementary good and demand for another complementary good is

When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline

Most economists agree that ________ are the single most important source of economic growth.

A. increases in physical capital B. technological advances C. increases in human capital D. discoveries of natural resources

Assume that Figure 4-16 shows the supply of soda. An increase in the price of syrup used in the production of soda will shift supply from

A. S1to S2. B. S2to S1. C. S2to S3. D. S1to S3.

A case for capital inflow controls can be made because capital inflows

A) can cause a lending boom and lead to excessive risk taking. B) never finance productive investments. C) always finance productive investments. D) are less likely to cause financial crises than regulation of banking activities.