If a market is narrowly defined, a product is likely to have fewer substitutes and demand for the product will be less elastic
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose you have $400 and the inflation rate is 5 percent. In order to earn a real return of $16 on your investment, the nominal interest rate needs to be near
A) 0 percent. B) 4 percent. C) 6 percent. D) 9 percent.
All business firms should consider their fixed costs in determining the prices they set.
Answer the following statement true (T) or false (F)
Total spending in a nation is its gross national product
a. True b. False Indicate whether the statement is true or false
Recall the Application about the behavior of prices in retail catalogs to answer the following question(s). In the Application, Anil Kasyap found that in periods of high inflation:
A. prices tended to change more frequently. B. prices tended to change less frequently. C. prices do not change at all. D. prices change equally as often as during periods of low inflation.