An increase in the rate of interest would increase
A. the opportunity cost of holding money.
B. the transactions demand for money.
C. the asset demand for money.
D. the price of bonds.
A. the opportunity cost of holding money.
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The interest rate on Treasury Inflation Indexed Securities can be roughly interpreted as
A) the real interest rate. B) the nominal interest rate. C) the rate of inflation. D) the rate of deflation.
The income effect of a lower price for good A
a. invariably leads a consumer to buy more of good A, because the combination of unchanged money income and lower price raises that consumer's real income or purchasing power b. invariably leads a consumer to buy less of good A because the combination of unchanged money income and lower price encourages that consumer to buy more of other goods c. may lead to a larger, smaller, or even an unchanged quantity of good A demanded; it all depends on the nature of the good itself d. creates a change in the good's relative price and, therefore, causes the consumer to substitute good A in place of other goods e. causes a parallel outward shift of the budget line, enabling the consumer to buy more of all goods than before
According to the law of demand, if
a. price increases, quantity demanded decreases b. people's income increases, quantity demanded increases c. price increases, quantity demanded increases d. people's income increases, quantity demanded decreases e. demand increases, supply will increase
Which of the following is not one of the four factors that affects the intensity of competition in Porter's Five Forces Model:
A. Intensity of competition B. The bargaining power of buyers C. The bargaining power of suppliers D. The threat of new entrants