Which of the following describes the relationship between interest rates and interest-sensitive goods, such as housing?
a. As interest rates decline, the demand for interest-sensitive goods increases.
b. As interest rates decline, the demand for interest-sensitive goods decreases.
c. As interest rates increase, the demand for interest-sensitive goods increases, driving prices upward.
d. As interest rates increase, the demand for interest-sensitive goods decreases, driving prices upward.
A
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A reason the production possibilities frontier exists is
A) unlimited resources and technology. B) scarcity of resources. C) scarcity of resources and unlimited technology. D) unemployment. E) that people's wants are unlimited.
If a corporate bond with face value of $5,000 has an interest rate of 4 percent paid once a year for a term of 30 years, what is the size of the coupon payment?
A) $4 B) $200 C) $1,250 D) $5,000
An increase in the price level, other things equal, will shift the ________.
A. consumption and net exports schedules of the aggregate expenditures model upward, but the investment schedule downward B. consumption, investment, and net exports schedules of the aggregate expenditures model upward C. consumption, investment, and net exports schedules of the aggregate expenditures model downward D. consumption and investment schedules of the aggregate expenditures model upward, but the net exports schedule downward
A decrease in the demand for money results in an increase in the interest rate
a. True b. False Indicate whether the statement is true or false