An increase in the price of a close substitute for good A will: ...

[beccaep]

An increase in the price of a close substitute for good A will:
 a. increase demand, increase price and increase the quantity exchanged.
  b. increase demand, increase price and decrease the quantity exchanged.
  c. increase supply, increase price and increase the quantity exchanged.
  d. decrease demand, decrease price and decrease the quantity exchanged.

Question 2

New loans create money directly, but they also create excess reserves in other banks, which leads to still further increases in both loans and the supply of money.
 a. True
  b. False
  Indicate whether the statement is true or false

[cascooper22]

Answer to Question 1

a

Answer to Question 2

True

[beccaep]

Excellent

[mcarey591]

Great answer, keep it coming