The relationship between a change in the price of a complementary good and demand for another complementary good is
A) positive.
B) negative.
C) inconclusive.
D) zero.
B
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The U.S. fiscal stimulus in 2009 did not increase GDP substantially because
a. the Federal Reserve was decreasing interest rates and real world estimates for the multiplier might be less than one. b. the Federal Reserve was increasing interest rates and real world estimates for the multiplier might be less than one. c. state governments were decreasing spending and real world estimates for the multiplier might be less than one. d. state governments were increasing spending and real world estimates for the multiplier might be less than one.
If a consumer buys two different goods, the rational spending rule requires that the:
A. ratio of total utility to price be equal for the two goods. B. total expenditure on the two goods be equal. C. ratio of average utility to price be equal for the two goods. D. ratio of marginal utility to price be equal for the two goods.