A headline reads: "Fed Cuts the Federal Funds Rate by Half a Point." This suggests that:

Refer to Figure 21-1. Which of the following is consistent with the graph depicted above?

A) Households become spendthrifts and begin to save less. B) An expected recession decreases the profitability of new investment. C) The government runs a budget surplus. D) Technological change increases the profitability of new investment. Figure 21-2

If good A had twice as many good substitutes as good B, but good B consumed twice the amount of a buyers income as good A, goods A and B would have the same elasticity of demand

a. True b. False Indicate whether the statement is true or false