You notice that when interest rates increases, new residential housing prices tend to decrease. This observation indicates that
A) there must be false causality between interest rates and housing prices.
B) higher interest rates must cause low housing prices.
C) a scatter diagram between interest rates and housing prices will show a negative relationshi
C
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Most of the volume of business in the United States is carried on by the
a. sole proprietor form of business b. partnership form of business c. corporate form of business d. government e. mutual fund form of business
A particular brand of toothpaste costs 4 British pounds in London. The nominal exchange rate is .80 and the real exchange rate is about 1.16 . These numbers imply that the U.S. price of the same toothpaste is about
a. $5.79 b. $4.29 c. $3.70 d. $2.76
The formula for the CPI is 100 times
What will be an ideal response?
Most economists agree that the aggregate demand curve is:
A. vertical. B. horizontal. C. relatively steep. D. relatively flat.