Other things remaining the same, an increase in the real risk-free interest rate causes the velocity of money to:

Indexing reduces the ability for relative price changes to allocate resources where they are more valuable

a. True b. False Indicate whether the statement is true or false

If two goods x and y are perfect complements, then if the price of x falls, the entire change in the demand for x is due to the income effect.

Answer the following statement(s) true (T) or false (F)