If the demand for an asset increases, its:
A. Price will increase and the rate of return for new investors of this asset will increase
B. Price will decrease and the rate of return for new investors of this asset will increase
C. Price will decrease and the rate of return for new investors of this asset will decrease
D. Price will increase and the rate of return for new investors of this asset will decrease
D. Price will increase and the rate of return for new investors of this asset will decrease
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Which of the following is an example of a topic studied by microeconomists?
A) Price determination by a firm B) Interest rate determination C) Measures to combat inflation D) National income calculations
Refer to Figure 5-1. Suppose the current market equilibrium output of Q1 is not the economically efficient output because of an externality. The economically efficient output is Q2. In that case, the diagram shows
A) the effect of an external cost imposed on a producer. B) the effect of a positive externality in the production of a good. C) the effect of a negative externality in the production of a good. D) the effect of an external benefit such as a subsidy granted to consumers of a good.
If the bank of Waterloo receives a $10,000 deposit and the reserve requirement is 10 percent, how much can the bank loan out? (Assume that before the deposit this bank is just meeting its legal reserve requirement.)
A) $1,000 B) $9,000 C) $10,000 D) $11,000
Unions typically ____ deregulation because it generally makes pricing ____ competitive.
A. oppose; more B. oppose; less C. support; more D. support; less