The derived demand curve for loans slopes downward because as interest rates
a. fall, future income becomes less valuable.
b. fall, investors develop pessimistic expectations.
c. fall, future income becomes more valuable.
d. rise, investors become pessimistic.
c
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"Supply" is best defined as the relationship between:
A) the current price of a good and the quantity supplied at that price. B) the price of a good or service and the quantity supplied by producers at each price during a period of time. C) the cost of producing a good and the price consumers are willing to pay for it. D) the quantity supplied and the price people are willing to pay for a good.
Bargain airline fares in which airlines charge varying rates to passengers for the same flight and service is an example of
A. market penetration. B. transaction pricing. C. collusion. D. price discrimination.
The World Trade Organization (WTO), established in 1995, has which of the following as an objective?
a. support free trade b. eliminate trade subsidies c. establish binding rules to ensure fairness in trade d. All of these.
What does NOT occur in a fully employed economy?
A. Cyclical unemployment B. Discouraged workers C. Frictional unemployment D. Structural unemployment