Mary Decreases Her Consumption of Good X After the Price

question 191

Multiple Choice

Mary decreases her consumption of Good X after the price of Good Y decreased. For Mary

• A)Good X and Good Y are substitutes.
• B)Good X and Good Y are complements.
• C)Good X is an inferior good.
• D)Good Y is an inferior good.

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Definitions:

Military Spending

Financial allocations by a government for the maintenance and development of its armed forces and defense-related activities.

GNP

Gross National Product, the total value of goods and services produced by the residents of a country within a specific time period.

GDP

Gross Domestic Product, a measure of the total economic output of a country, representing the value of all goods and services produced over a specific time period.

Savings Rate

The savings rate is a measure of the proportion of disposable income that households save rather than spend on consumption.