The relationship between a change in the price of a complementary good and demand for another complementary good is
A. negative.
B. inconclusive.
C. zero.
D. positive.
Answer: A
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When many banks choose to hold excess reserves, ______________ monetary policy may not work well.
a. tight b. free c. expansionary d. contractionary
Gross private domestic investment
a. excludes all investment in the United States by foreign firms. b. includes all capital in the United States. c. includes net additions to the capital stock plus all new corporate stocks and bonds. d. includes business expenditures on new factories, tools, and machinery.
Which of the following is generally not a result of increases in productivity per person?
A. increases in per capita income. B. increases in GDP per capita. C. increase in unemployment. D. economic growth.
Which of the following is NOT a function of the interbank part of the foreign exchange market?
A. Provides clearing services for organizations that prefer to use different currencies B. Provides a bank with a continuous stream of information on conditions in the foreign exchange market C. Permits a bank to take on a position in a foreign currency quickly if the bank and its traders want to speculate on exchange-rate movements in the near future D. Provides a bank the means to readjust its own position quickly and at low cost when it separately conducts a large trade with a customer