Which of the following is the most sensitive to interest rate changes?
a. The demand for non-durable goods.
b. The demand for inexpensive goods.
c. The demand for durable goods.
d. The demand for necessities.
e. The demand for services.
C
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. When a monopoly supplier acquires a monopoly manufacturer, the vertical merger intensifies the supplier's use of monopoly power over the manufacturer. 2. A buy-out is more likely to delay a rival's reemergence than is predatory pricing. 3. Economic analysis suggests that resale price maintenance is primarily used by manufacturers to keep prices artificially high. 4. A firm has the incentive to cheat on a cartel agreement only when it fears that other cartel members will also cheat. 5. The Prisoners' Dilemma game is another situation where the Invisible Hand Theorem is true.
A cost-justified precaution is a safety measure whose
A) benefits outweigh its costs. B) costs outweigh its benefits. C) costs equal its benefits. D) costs are zero.
If concerns about mad-cow disease impose economic losses on the perfectly competitive cattle ranchers, exit by the ranchers combined with no further changes in the demand for beef will force the price of beef to
A) decrease. B) not change. C) increase. D) fluctuate, with the trend being lower prices. E) probably change, but more information about the market supply of beef is needed to answer the question.
Which of the following statements accurately describes the situation shown?
a. The demand curve for euros shifts from D1 to D2 due to increased demand for euros.
b. The demand curve for dollars shifts from D1 to D2 due to increased demand for dollars.
c. Increased demand for euros shifts the demand curve for euros from D2 to D1.
d. Decreased demand for euros shifts the demand curve for euros from D1 to D2.