Quantity demanded of normal good X. The coefficient of cross elasticity of demand is:
A. negative and therefore these goods are substitutes.
B. negative and therefore these goods are complements.
C. positive and therefore these goods are substitutes.
D. positive and therefore these goods are complements.
Answer: B
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The Clayton Act
a. was passed in 1890 b. created the Federal Trade Commission c. abolished antitrust policy in this country d. attempted to give explicit content to what formed an antitrust violation e. made mergers between corporations illegal
If the economy is in equilibrium at $1,000 billion national income and if the multiplier is 3 and intended investment is $400 billion, what happens to national income when intended investment decreases to $380 billion? It will
a. increase to $1,020 billion b. increase to $1,060 billion c. decrease to $980 billion d. decrease to $940 billion e. decrease to $970 billion