Author Question: When demand and income move in the same direction, a good is said to be: a. a normal good. b. an ... (Read 67 times)

Medesa · **on:** Jun 30, 2018

When demand and income move in the same direction, a good is said to be:
a. a normal good.
b. an inferior good.
c. a complementary good.
d. a substitute good.

Question 2

Suppose you found 2,000 hidden in your mattress and deposited it in a demand deposit account at your bank. If the reserve requirement was 25 percent, the deposit would directly create ____ in excess reserves and ultimately lead to a ____ total increase in the money supply, if all banks in the system lend out 100 percent of their excess reserves.
a. 2,000; 8,000
b. 2,000; 6,000
c. 1,500; 8,000
d. 1,500; 6,000