According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?
A. Always.
B. When the supply of corn is fixed.
C. When nonprice determinants, like income and the number of buyers, are unchanged.
D. When there are no shortages or surpluses of corn.
Answer: C
Economics
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The prices of all fixed-income assets (bonds)
A) are independent of the interest rate. B) are determined by the U.S. Treasury. C) vary directly with the interest rate. D) vary inversely with the interest rate.
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Based on data from the U.S. economy, the marginal propensity to consume is about
A) 0.95. B) 0.75. C) 0.60. D) 1.10. E) 0.87.
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