If two goods both had negative cross elasticities and negative income elasticities,
a. they are both normal and substitutes for one another.
b. they are both normal and complements for one another.
c. they are both inferior and substitutes for one another.
d. they are both inferior and complements for one another.
Question 2
Which of the following is a definition of velocity?
a. Velocity = value of final goods and services produced/money supply
b. Velocity = real GDP/M
c. Velocity = nominal GDP/real GDP
d. Velocity = (P Q)/(M V)
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The risk of dying before the age of 65 gets lower as family income gets higher.
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