All of the following explain the downward slope of the aggregate demand curve EXCEPT
A) changes in the stock of real wealth held by individuals.
B) the effect of changing interest rates on the quantity demanded of interest-rate-sensitive goods.
C) the availability of foreign substitute goods.
D) the presence of unused production capacity and unemployment.
D
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As the confectionary, Mrs. Fields' Cookies, gained popularity in California and decided to expand its operations to Utah, it was able to achieve economies of scale. This means that:
a. property taxes were lower in its new location in Utah. b. transport and communication systems were more developed in Utah. c. wages were higher in Utah compared to California. d. expansion of output and firm size led to specialization among the workers. e. government policies were more favorable in Utah.
A security that pays the holder, should mortgage borrowers fail to repay their debts, is a
A. traditional, thirty-year fixed-rate mortgage. B. credit-default swap. C. pay-option adjustable-rate mortgage. D. thirty-year U.S. Treasury bond.