Inflation reduces the multiplier effect by reducing consumers’ wealth and purchasing power.

If brokerage commissions on bond sales decrease, then, other things equal, the demand for bonds will ________ and the demand for real estate will ________

A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase

If the demand for a good is highly elastic, that good is likely to have:

A. many close substitutes. B. many close complements. C. few close substitutes. D. few close complements.