What happens to the demand for Xbox games if the price of an Xbox ...

[abarnes]

What happens to the demand for Xbox games if the price of an Xbox falls?
 
  A) The demand for Xboxes decreases because the price of a substitute falls.
  B) The demand for Xboxes increases because the price of a complement falls.
  C) The demand for Xboxes decreases because the price of a complement falls.
  D) The demand for Xboxes remains unchanged.

Question 2

The Ricardo-Barro effect holds that
 
  A) equal increases in taxes and government expenditures have no effect on equilibrium real GDP.
  B) government budget deficits have no effect on the real interest rate.
  C) a government budget deficit crowds out private investment.
  D) a government budget deficit induces a decrease in saving that magnifies the crowding out effect.

[Sarahjh]

Answer to Question 1

B

Answer to Question 2

B