If an increase in the growth rate of the money supply results in an equal increase in the rate of inflation with no effect on any real variables, we say that

Sefronia and Bella share an apartment and they are deciding whether or not to purchase a weekly housecleaning service. The value of the service to each of them is $50 and it costs $80 to hire a housecleaner

Suppose Bella is lazy and a spendthrift and Sefronia suspects that Bella will be willing to pay $80. What is Sefronia likely to do, given that she is as rational as any other person? A) She might claim that she is not willing to pay for a housecleaner, hoping that Bella would pay the entire $80. B) She will correctly rationalize that Bella's laziness and spendthrift ways are irrelevant to the decision at hand. C) She will come clean and tell Bella that since Bella is lazy and a spendthrift she should pay a bigger share of the $80. D) She might offer to do Bella's housecleaning chores if Bella would pay her $50.

Economists have estimated that the cross-price elasticity of demand between beer and spirits is -0.50, the income elasticity for spirits is 1.21 and the income elasticity for wine is 5.03

These elasticities mean that beer and spirits are ________, and spirits and wine are ________. A) complements; substitutes B) substitutes; luxuries C) complements; luxuries D) normal goods; luxuries