If two commodities are complements then:
a. the cross-price elasticity will be zero.
b. the cross-price elasticity will be one.
c. the cross-price elasticity will be negative.
d. the cross-price elasticity will be positive.
C
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Those economists who believe that monetary policy is more powerful than fiscal policy argue that the
a. LM curve is vertical. b. IS curve is horizontal. c. interest rate elasticity of investment is large. d. interest rate elasticity of investment is small.
The price of a good will fall when:
a. there is a shortage of the good. b. there is a surplus of the good. c. demand for the good increases. d. the supply of the good decreases.
When the Fed conducts open market operations, what type of bonds does the Fed purchase?
a. Newly issued bonds from the treasury b. Bonds newly issued by companies c. Previously issued bonds from the treasury d. Bonds previously issued by companies e. Newly issued bonds from other countries
Government may actually establish temporary monopolies by the issuance of patents and copyrights.
Answer the following statement true (T) or false (F)