When demand and income move in the same direction, a good is said ...

[Medesa]

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

[ky860224]

Answer to Question 1

a

Answer to Question 2

c

[Medesa]

Thanks for the timely response, appreciate it

[ghepp]

Great answer, keep it coming