The greater the positive cross elasticity of demand between ...

[mpobi80]

The greater the positive cross elasticity of demand between products A and B, the:
 a. greater the degree to which they are substitutes.
 b. greater the degree to which they are complements.
 c. smaller the elasticity of demand for both products.
 d. greater will be both products responsiveness to changes in income.

Question 2

When Fed policy is being used to offset a contractionary gap, which of interest rates, investment, net exports and aggregate demand moves in the opposite direction from the others?
 a. Interest rates.
 b. Investment.
 c. Net Exports.
 d. Aggregate demand..

[Smiles0805]

Answer to Question 1

a

Answer to Question 2

a