If the percentage change in quantity demanded of a good is smaller than the percentage change in price, consumers are very price sensitive to the price change of the good
a. True
b. False
Indicate whether the statement is true or false
False
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In the standard consumption function of C = a + bY, the MPC is
A) Y. B) bY. C) a. D) b.
Assume Jean-Claude purchased real estate for $500,000 using $50,000 of which is his own money and $450,000 of which he borrowed at an 8 percent interest rate. If the value increased by 10 percent in one year and he sold the property, what was Joe’s rate of return on his investment? If the value of the property had declined by 2 percent, what would have been the rate of return on his investment?
What will be an ideal response?
Which advantage(s) do mutual funds claim to provide?
a. diversification and access to the skills of professional money managers b. diversification but not access to the skills of professional money managers c. access to the skills of professional money managers but not diversification d. neither diversification nor access to the skills of professional money managers.
The demand curve for a good
a. is determined primarily by the cost of producing the good. b. indicates the relationship between the price of the good and the price of other goods. c. illustrates the quantity producers will provide at alternative prices. d. indicates the quantities of the good that people are willing to purchase at various prices.