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Author Question: Good A has an income elasticity equal to -1.0 and a cross price elasticity with respect to Good B of ... (Read 64 times)

Yi-Chen

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on: Jun 30, 2018
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


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bob

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Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

True


Yi-Chen

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Reply 2 on: Jun 30, 2018
Excellent

kthug

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Reply 3 on: Yesterday
Gracias!

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