Author Question: If peanut butter and jelly are complements, but peanut butter and tuna fish are substitutes, a. an ... (Read 135 times)

D2AR0N · **on:** Jun 30, 2018

If peanut butter and jelly are complements, but peanut butter and tuna fish are substitutes,
a. an increase in the price of peanut butter will increase the demand for jelly.
b. an increase in the price of peanut butter will decrease the demand for jelly.
c. an increase in the price of peanut butter will decrease the demand for tuna fish.
d. a decrease in the price of peanut butter will increase the demand for tuna fish.

Question 2

When all the factors of aggregate expenditure are influenced by income, the multiplier is no longer solely a function of the marginal propensity of consumption.
a. True
b. False
Indicate whether the statement is true or false