Good A has an income elasticity equal to -1.0 and a cross price ...

[Yi-Chen]

Good A has an income elasticity equal to -1.0 and a cross price elasticity with respect to Good B of 0.9 . 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

The Fed sometimes works to partly offset or even neutralize the effects of fiscal policy with monetary policy
 a. True
  b. False
  Indicate whether the statement is true or false

[bob]

Answer to Question 1

a

Answer to Question 2

True

[Yi-Chen]

Excellent

[alexanderhamilton]

Thanks for the timely response, appreciate it