75. Suppose that a decrease in the price of X results in less of good Y sold. What are X and Y called?

(A) complementary goods.

(B) substitute goods. (C) inferior goods. (D) normal goods.

76. Ionnis puts money in the bank and earns a 7 percent nominal interest rate. What happens if the inflation rate is 3 percent?

(A) Ionnis will have 7 percent more money, which will purchase 10 percent more goods.

(B) Ionnis will have 3 percent more money, which will purchase 5 percent more goods.

(C) Ionnis will have 7 percent more money, which will purchase 4 percent more goods.

(D) Ionnis will have 3 percent more money, which will purchase 10 percent more goods.

77. What is the problem with using GDP as a measure of societal well-being?

(A) GDP does not measure environmental damage. (B) GDP does not measure community and family bonds.

(C) GDP does not measure rights and freedoms. (D) All of the above.

78. Which of the following measures of money includes only coins and notes in circulation (currency outside banks)?

(A) M1.

(B) M1+.

(C) M2.

(D) M2+.