If the cross-price elasticity of two goods is 0.25, then we know that these goods are:
A. substitutes because their cross-price elasticity is greater than zero.
B. complements because their cross-price elasticity is less than 1.
C. substitutes because their cross-price elasticity is less than 1.
D. complements because their cross-price elasticity is greater than zero.
A. substitutes because their cross-price elasticity is greater than zero.
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The interest rate is 5 percent. How does $500 to be received a year from today compare in value to $500 right now?
What will be an ideal response?
Vault cash is a(an)
A) liability of the Fed and is counted as reserves. B) asset of the Fed and is counted as reserves. C) liability of the Fed and is not counted as reserves. D) asset of the Fed and is not counted as reserves.
A devaluation of the exchange rate is a policy action that
A) increases the real exchange rate. B) decreases the real exchange rate. C) increases the nominal exchange rate. D) decreases the nominal exchange rate.
A majority of international transactions involve the buying and selling of _____
a. bank deposits denominated in foreign currency b. currency notes c. traveler's checks d. stocks denominated in domestic currency e. bills of exchange