As the relative price of a good falls, the substitution effect implies that people buy
A) less of that good and more of its substitutes.
B) more of that good and less of its substitutes.
C) less of that good and less of its substitutes.
D) more of that good and more of its substitutes.
B
Economics
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Immediately following a business cycle "peak" comes a
A) "trough." B) "recession." C) "expansion." D) "recurrence."
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Fiscal policy refers to:
A. the determination of the nation's money supply. B. government policies aimed at changing the underlying structure or institutions of the economy. C. decisions to determine the government's budget. D. policy directed toward increasing exports and reducing imports.
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