The substitution effect explains why there is an inverse relationship between the price of a product and the quantity of the product demanded

If the opportunity cost of time is ________, and an individual spends ________ commuting every month, his opportunity cost of commute is $100 every month

A) $5 per hour; 10 hours B) $8 per hour; 20 hours C) 10 per hour; 10 hours D) $12 per hour; 5 hours

If the Fed adopts a policy of pegging the interest rate, a ________ in government spending forces the Fed to increase the money supply to prevent interest rates from ________

A) fall; increasing B) fall; decreasing C) rise; decreasing D) rise; increasing