Two goods, X and Y, are complementary goods if the demand for X
a. increases when the price of Y increases
b. increases when income increases
c. decreases when the price of Y increases
d. increases as the price of its substitute good increases
e. decreases as the price of its substitute good decreases
C
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Refer to Figure 26-8. In the figure above, if the economy is at point A, the appropriate monetary policy by the Federal Reserve would be to
A) lower interest rates. B) raise interest rates. C) raise income taxes. D) lower income taxes.
To limit political influence on Fed policy, the terms of the Fed Board of Governors are staggered so that one new appointment is made every four years to coincide with the presidential elections
Indicate whether the statement is true or false
If player R moves first in the game in Scenario 13.14, the equilibrium will
A) not be different from what it is in the simultaneous-move scenario. B) be to R's detriment because it will not be able to react to C's choice. C) be one in which R chooses 50 and C chooses 150. D) be one in which R chooses 100 and C chooses 50. E) be one in which R chooses 150 and C chooses 50.
Economists agree that at least in the short run disinflation
a. leads to a period of higher unemployment. They also agree that the costs of even moderate inflation is high. b. leads to a period of higher unemployment. They disagree about the cost of moderate inflation. c. leads to a period of lower unemployment. They also agree that the cost of even moderate inflation is high. d. leads to a period of lower unemployment. They disagree about the cost of moderate inflation.