If real estate prices are expected to drop, all else equal, the demand for bonds ________ and the interest rate_______
A) increases; rises
B) increases; falls
C) decreases; rises
D) decreases; falls
B
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Answer the following statement(s) true (T) or false (F)
1. The Engel curve contains information that is not found in the indifference curve diagram. 2. The Law of demand can only be violated if a good is inferior. 3. All Giffen goods must be inferior goods, but not all inferior goods are Giffen goods. 4. In a two-good world, one good-but not both-can be inferior. 5. An inferior good is one for which the substitution effect is relatively large.
The government sometimes creates an excess demand for a product by setting a maximum price at which the product may be sold to consumers. This is sometimes called a
A) subsidy. B) price floor. C) tax. D) price ceiling.
Explain the concept of "learning by doing" with respect to infant industry protection
What will be an ideal response?
Refer to Figure 13-4. What is the area that represents the total fixed cost of production?
A) P1bdP3 B) 0P1aQa C) P0adP3 D) That information cannot be determined from the graph.