With only two goods, if the income effect is in the opposite direction as the substitution effect but the income effect dominates then the good is
a. normal
b. inferior but not Giffen
c. Giffen
d. There is not enough information to answer.
c
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All of the following are included in M1 EXCEPT
A) coin and currency. B) money market mutual fund shares. C) traveler's checks. D) checking account balances.
Increases in government expenditures and large budget deficits are projected for 2014-2020 . If the economic recovery is weak and growth is sluggish during this decade, this will be
a. supportive of the Keynesian view, but inconsistent with the crowding-out, new classical, and supply-side theories. b. inconsistent with the Keynesian view, but supportive of the crowding-out, new classical, and supply-side theories. c. inconsistent with both Keynesian and non-Keynesian theories. d. supportive of both Keynesian and non-Keynesian theories.