Refer to the information provided in Figure 3.5 below to answer the question(s) that follow. Figure 3.5Refer to Figure 3.5. If consumer income decreases, the demand for chili peppers shifts from D0 to D1. This implies that chili peppers are a(n)
A. inferior good.
B. normal good.
C. substitute good.
D. complementary good.
Answer: B
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Data on the relationship between the U.S. multilateral real exchange rate and the U.S. trade balance shows:
a. a surprising result that the decrease in the trade balance is correlated with an increase (depreciation) of the U.S. dollar multilateral real exchange rate. b. a predictable result that the increase in the trade balance is correlated with an increase (depreciation) of the U.S. dollar multilateral real exchange rate. c. a correlation that is so weak it cannot be used to support the theory that the trade balance is related to the real effective exchange rate of the U.S. dollar. d. a surprising result that the increase in the U.S. trade balance occurs with a decrease (appreciation) in the real effective exchange rate of the dollar.
The actions produced by arm muscles but NOT by leg muscles are __________.
Fill in the blank(s) with the appropriate word(s).