Goods A and B are complementary goods. An increase in the price of good A has occurred. In the market for good B this will lead to

In the period 1960–95, the federal government

(a) played, in general, a much larger role in the economy during this period than prior to World War II. (b) played a small role in the economy, similar to the 1920s. (c) eliminated most of the major programs for the federal government that were established by the New Deal in the 1930s, while state and local governments began to play a larger role in the economy. (d) played a large role in defense spending but followed basically a laissez-faire policy toward the rest of the economy.

Which of the following is consistent with moving from a surplus to equilibrium in the market for foreign currency exchange?

a. the exchange rate falls causing U.S. residents to import more b. the exchange rate falls causing U.S. residents to import less c. the exchange rate rises causing U.S. residents to import more d. the exchange rate rises causing U.S. residents to import less