Good A has an income elasticity equal to 0.4 and a cross price ...

[torybrooks]

Good A has an income elasticity equal to 0.4 and a cross price elasticity with respect to Good B of 1.2 . Then:
 a. Good A is an inferior good and Goods A and B are substitutes.
  b. Good A is an inferior good and Goods A and B are complements.
  c. Good A is a normal good and Goods A and B are substitutes.
 d. Good A is a normal good and Goods A and B are complements.

Question 2

Quantitative easing involved Fed purchases of long term securities rather than short term securities.
 a. True
  b. False
  Indicate whether the statement is true or false

[wuly]

Answer to Question 1

c

Answer to Question 2

True

[torybrooks]

Thanks for the timely response, appreciate it

[laurnthompson]

Excellent