If a decrease in the price of good A causes a decrease in demand for good B, the two goods are
A) substitutes.
B) complements.
C) normal.
D) inferior.
Answer: A
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If foreigners spend more on U.S.-made goods and services than we spend on theirs
A) foreigners must borrow from the United States or sell U.S. assets to make up the difference. B) all U.S. national saving remains in the United States. C) we must borrow from foreigners because of low imports. D) funds flow in from abroad to help finance U.S. investment.
An increase in supply will cause the supply line to
a. move to the left. b. move to the right. c. become more vertical. d. become more horizontal.
Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 deposit, then its excess reserve balance will be:
A. $0. B. $90. C. $100. D. $900.
income expressed in current year dollars
What will be an ideal response?