Interest rates are positive because
A) people prefer future consumption over current consumption.
B) people prefer current consumption over future consumption.
C) usury laws require rates to be very high.
D) banks are not competitive.
B
You might also like to view...
According to the graph shown, if the market price decreases (all else staying the same):
A. producer surplus would increase.
B. producer surplus would decrease.
C. total surplus would increase.
D. quantity would increase.
Exhibit 5-9 Supply and Demand Curves for Good X
?
As shown in Exhibit 5-9, the price elasticity of demand for good X between points E and B is:
A. 3/7 = 0.43. B. 7/3 = 2.33. C. 1/2 = 0.50. D. 1.
The change in people's purchasing power that occurs when the price of one good that they purchase changes is the
A) law of diminishing marginal utility. B) real-income effect. C) substitution effect. D) price income effect.
If the income elasticity of a good is negative, say –1.8, we can infer that the good is a(n)
a. luxury good, such as holiday travel b. substitute good, such as Pepsi, with Coke available c. complementary good, such as Pepsi, with a candy bar available d. inferior good, such as a non-color televison e. essential good, such as food