If the cross-price elasticity of demand between two goods is -2.2, then the
a. two goods are substitutes
b. two goods are complements
c. income elasticity of demand must be between 0 and 1.0
d. goods are both normal goods
e. goods are both inferior goods
B
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Accelerator theory refers to the theory of
A) consumption that emphasizes that current consumer spending depends positively on the expected future growth of GDP. B) investment that emphasizes that current investment spending depends positively on the expected future growth of government spending. C) consumption that emphasizes that increases in consumption spending will result, through the multiplier effect, in greater increases in GDP. D) investment that emphasizes that current investment spending depends positively on the expected future growth of GDP.
In the Cambridge version of the Quantity Theory of Money, the amount of real money balances __________ after an increase in the nominal money supply
A) increases B) decreases C) is unchanged D) Cannot be determined from the information given.