The difference between microeconomics and macroeconomics is that
a. microeconomics involves mathematical relationships, and macroeconomics is predominantly a verbal analysis.
b. microeconomics deals with the principle of scarcity, and macroeconomics deals with the problem of poverty.
c. microeconomics deals with narrowly defined units, and macroeconomics focuses on highly aggregated markets.
d. microeconomics is normative, and macroeconomics is positive.
c. microeconomics deals with narrowly defined units, and macroeconomics focuses on highly aggregated markets.
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A decline in real mortgage rates will lead, other things the same, to ________
A) lower demand for housing B) tighter financing constraints C) an increase in residential investment D) a lower relative price of housing
In the analysis of the interest rate effect, when the price level changes, the quantity of money households and firms' want to hold changes in the ______ direction as interest rates, while investment changes in the _____ as the quantity RGDP demanded
a. Same, same b. Same, opposite c. Opposite, same d. opposite, opposite