Good a Has an Income Elasticity Equal to 0

Multiple Choice

Good A has an income elasticity equal to 0.4 and a cross price elasticity with respect to Good B of 1.2. Then:

A) ​Good A is an inferior good and Goods A and B are substitutes.
B) ​Good A is an inferior good and Goods A and B are complements.
C) ​Good A is a normal good and Goods A and B are substitutes.
D) ​Good A is a normal good and Goods A and B are complements.