Other things the same, when the price level falls, interest rates
a. rise, which means consumers will want to spend more on homebuilding.
b. rise, which means consumers will want to spend less on homebuilding.
c. fall, which means consumers will want to spend more on homebuilding.
d. fall, which means consumers will want to spend less on homebuilding.
c
You might also like to view...
An expansion occurs when ________, when ________, or when both of these occur.
A. potential output grows slowly; actual output equals potential output B. potential output grows slowly; actual output rises above potential output C. potential output grows rapidly; actual output equals potential output D. potential output grows rapidly; actual output rises above potential output.
How do decreasing returns to scale affect the shape of the long-run average cost curve?
What will be an ideal response?
In the aftermath of the human devastation and misery of the Great Depression, many people—including many economists—became more aware of
a. the need for independence in the market-oriented economic system. b. the need to replace the market-oriented economic system. c. vulnerabilities within the market-oriented economic system. d. the strengths of the market-oriented economic system.
All of the following are microeconomic consequences of inflation except
A. A wealth effect. B. An income effect. C. A profit effect. D. A price effect.