Refer to Figure 18.2. After trade and specialization begin, the maximum amount of spears that Macadamia can consume is

If there is no Ricardo-Barro effect, a government budget deficit will ________ the equilibrium real interest rate and ________ the equilibrium quantity of investment

A) raise; decrease B) raise; increase C) lower; increase D) not change; not change E) lower; decrease

When people's incomes increase, the demand for a good increases. The good is called

A) an inferior good. B) a complement. C) a substitute. D) a normal good.