If the cross-price elasticity of demand is -3, then
a. the goods are substitutes
b. one good is price inelastic
c. one good is an inferior good
d. one good is a luxury good
e. the goods are complements
E
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Refer to the game between James and Theodore depicted in Figure 12.2. Which of the following is true?
A. If James chooses Up, Theodore's best response is to choose Left.
B. If James chooses Down, Theodore's best response is to choose Left.
C. If Theodore chooses Left, James's best response is to choose Down.
D. If Theodore chooses Right, James's best response is to choose Up.
Legal reserves are
A. vault cash plus Treasury notes. B. funds that banks have on reserve with their district Federal Reserve Bank plus vault cash. C. Treasury notes, vault cash, and demand deposits. D. Treasury notes plus demand deposits.