A ________ in the long-run real interest rate ________ household's demand for durable goods
A) fall; increases B) rise; increases
C) rise; does not affect D) fall; lowers
A
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The demand for a productive resource is
a. demand for the resource itself. b. derived from the demand for the good or service it produces. c. unrelated to the output it produces. d. derived from the demand for the good or service it produces AND demand for the resource itself.
Compared to the no-trade situation, when a country imports a good:
a. domestic consumers gain, domestic producers lose, and the gains outweigh the losses. b. domestic consumers lose, domestic producers gain, and the gains outweigh the losses. c. domestic consumers gain, domestic producers lose, and the losses outweigh the gains. d. domestic consumers gain, domestic producers lose an equal amount.
A country has a trade deficit. Which of the following must also be true?
a. net capital outflow is positive and domestic investment is larger than saving b. net capital outflow is positive and saving is larger than domestic investment c. net capital outflow is negative and domestic investment is larger than saving d. net capital outflow is negative and saving is larger than domestic investment
Figure 4-17
Refer to . Suppose a price floor of $7.00 is imposed. As a result,
a.
buyers' total expenditure on the good decreases by $20.00.
b.
the supply curve will shift to the left so as to now pass through the point (Q = 40, P = $7.00).
c.
the quantity of the good demanded decreases by 20 units.
d.
the price of the good continues to serve as the rationing mechanism.