Good A has an income elasticity equal to -1.0 and a cross price elasticity with respect to Good B of 0.9 . Then:
a. Good A is an inferior good and Goods A and B are substitutes.
b. Good A is an inferior good and Goods A and B are complements.
c. Good A is a normal good and Goods A and B are substitutes

Explain why real GDP might be an unreliable indicator of the standard of living

What will be an ideal response?

The segmented markets theory

A) has difficulty explaining why yield curves usually slope up. B) has difficulty explaining why yield curves usually slope down. C) has difficulty explaining why yields on instruments of different maturities tend to move together. D) provides a good explanation of why yields on instruments of different maturities tend to move together.