Which of the following pairs of goods is most likely to have a positive cross-price elasticity?

In the money market, an increase in money supply will: a. increase the demand for money at each interest rate

b. decrease the demand for money at each interest rate. c. encourage people to exchange money for interest-bearing assets. d. encourage people to exchange interest-bearing assets for money. e. increase the interest rate.

Crowding out refers to the situation in which

a. borrowing by the federal government raises interest rates and causes firms to invest less. b. foreigners sell their bonds and purchase U.S. goods and services. c. borrowing by the federal government causes state and local governments to lower their taxes. d. increased federal taxes to balance the budget causes interest rates to increase and consumer credit to decrease.