Two goods, X and Y, are called complements if
a. an increase in PX causes more Y to be bought.
b. an increase in PX causes less Y to be bought.
c. an increase in PY causes less Y to be bought.
d. an increase in income causes more of both X and Y to be bought.
b
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Under the Gramm-Leach-Bliley Act the oversight of the securities activities of bank holding companies belongs to
A) the SEC. B) the Comptroller of the Currency. C) the U.S. Treasury. D) the Federal Reserve.
Which of the following would NOT cause the demand curve for bonds to shift?
A) a change in wealth B) a change in the price of bonds C) a change in the liquidity of bonds D) a change in expected inflation
Can a one-time increase in the supply of money cause one-shot inflation?
A) Yes, because it shifts the aggregate demand curve rightward. B) No, because it cannot shift the aggregate demand curve rightward. C) Yes, because it shifts the aggregate demand curve leftward. D) Yes, because it shifts the aggregate supply curve rightward.
Ingrid has been waiting for the show "Mamma Mia!" to come to town. When it finally does come, tickets cost $60. Ingrid's reservation price is $75. But when Ingrid tries to buy a ticket, they are sold out. Suppose Steven was able to purchase a ticket at the box office for $60. Steven's reservation price for the ticket is $65. If Steven attends "Mamma Mia!" and Ingrid does not, then this situation is:
A. efficient because Steven arrived at the ticket counter before the show was sold out. B. inefficient because Ingrid would have enjoyed the show too. C. inefficient because Steven and Ingrid could have made a mutually beneficial trade. D. efficient because Steven paid less for the ticket than his reservation price.