If two goods are complements:
A. they are consumed independently.
B. an increase in the price of one will increase the demand for the other.
C. a decrease in the price of one will increase the demand for the other.
D. they are necessarily inferior goods.
Answer: C
Economics
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As a result of the 1986 Tax Reform Act, in 1988 some high-income taxpayers had lower marginal tax rates than middle-income taxpayers
a. True b. False
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The reason that stagflation tends to follow an inflationary gap is that
a. output tends to fall even as prices continue to rise as part of the self-correcting mechanism. b. government officials tend to overact in controlling inflation. c. businesses try to increase profits by raising prices and increasing output. d. workers accept pay cuts to maintain employment.
Economics