Joe likes peanut butter and jelly sandwiches for lunch. We can conclude that for Joe the cross elasticity of demand for peanut butter with respect to jelly is
A) positive because jelly and peanut butter are substitutes.
B) positive because jelly and peanut butter are complements.
C) negative because jelly and peanut butter are substitutes.
D) negative because jelly and peanut butter are complements.
D
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Suppose that the consumer price index (CPI) was 160 in Year X and 166 in Year Y, inflation during Year Y was approximately:
a. zero; prices were stable. b. 3.8 percent. c. 6 percent. d. 66 percent.
Health savings accounts (HSAs) implemented by the 2003 Medicare law:
A. are only available to those enrolled in Medicare. B. allow workers to accumulate untaxed dollars for payment of qualified medical expenses. C. are criticized because they require workers to "use it or lose it" each year; workers are not allowed to accumulate balances over time. D. can only be used to pay for prescription drugs.