Suppose you inherit an orange orchard and it generates an annual return of $16,000 . You want to sell it. The interest rate is 8 percent. If the government imposed an interest rate ceiling at 10 percent, the ceiling would cause the price of your orchard to
a. go down
b. go up
c. stay the same
d. be irrelevant because you would be unable to sell the orchard at any price when the price ceiling is higher than the interest rate
e. not enough information given
C
You might also like to view...
If both imports and exports fell, a. AD would decrease
b. AD would increase. c. AD would decrease if exports fell more than imports. d. AD would increase if exports fell more than imports.
Which one of the following people would be counted as unemployed in Canada?
A) Ruth is a 14-year-old student and has been looking for an after-school job every day for the past month. B) Ron has quit looking because he believes that there is no work available for him. C) Simone is currently working but expects to be laid off by the end of the month, before next month's survey can be completed. D) Sarah has been looking for a job but is taking a month-long break from the job-seeking effort due to her lack of skills. E) Rebekah is a recent graduate looking for work.
Gasoline prices in the United States decreased significantly between 2014 and 2016. A decrease in the price of gasoline, holding other things constant, will cause which of the following to occur?
A) increase the demand for gasoline. B) decrease the demand for gasoline. C) increase the quantity of gasoline demanded. D) decrease the quantity of gasoline demanded.
The marginal propensity to consume (MPC) can best be defined as the fraction of
A. real disposable income that is consumed. B. real disposable income that is not consumed. C. a change in real disposable income that is saved. D. a change in real disposable income that is spent.