Refer to the following graph to answer the question:
Suppose price rises from $90 to $110. Total revenue moves in the ________ (same, opposite) direction as the dominant effect. In this case, total revenue ________ (increases, decreases, stays the same) because the quantity effect is ________ (larger than, smaller than, the same as) the price effect.
A. opposite; increases; larger than
B. same; increases; larger than
C. same; decreases; smaller than
D. opposite; decreases; smaller than
E. same; decreases; larger than
Answer: E
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As the real interest rate increases, the quantity of saving supplied ________ and the quantity of saving demanded ________.
A. increases; decreases B. does not change; does not change C. increases; increases D. decreases; increases
One factor which brought on the recession of 2007-2009 was the end of the housing bubble
Indicate whether the statement is true or false
Risk:
A. is inherent in every action or decision. B. exists whenever the consequences of a decision are uncertain. C. exists when outcomes are certain. D. is a good that can be purchased.
Which statement is true?
A. Most economists support rent control laws. B. Usury laws and rent control are price ceilings. C. Usury laws have never had any effect because they are set well above interest rates. D. None of these choices are true.