If the Federal Reserve is currently paying 1% interest on bank reserves, but then reduces that interest rate to 0.5%, banks may decide to hold ________ reserves, and the money supply may ________.

For most goods and services the income elasticity of demand is

A) negative. B) positive. C) invisible. D) inverse.

Negative cross-price elasticity of demand indicates that

a. the product is an inferior good b. the product is a necessity c. the product is a luxury d. the two products are substitutes e. the two products are complements