The relationship between real estate markets and interest rates is:
A. inverse; higher interest rates drive down real estate prices and vice versa.
B. direct; high interest rates lead to high real estate values as people abandon other financial assets.
C. complex; cuts in the short-term interest rate lead to increases in long-term rates and higher real estate prices.
D. nonexistent.
Answer: A
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What happens when the price level falls?
A) Total planned real spending remains constant. B) Total planned real spending increases. C) Total planned real spending also falls. D) Planned real spending on goods increases but planned real spending on services falls.
What's the firm's contribution margin?
a. $15 b. $18 c. $3 d. $4
Firm's should lower the price of their goods
a. If the demand for the product is elastic b. If it acquires a firm selling a complement good c. If it acquires a firm selling a substitute good d. Both a and b
Relative to life insurance companies, the liabilities of property and casualty insurance companies are
A) longer-term. B) more unpredictable. C) less risky. D) subject to higher taxes.