If the elasticity of demand coefficient for a good is 6 (in absolute terms), we know:
a. that for every 1% increase in quantity, there will be a 6% increase in price.
b. that for every 1% increase in quantity, there will be a 6% decrease in price.
c. that for every 6% increase in quantity, there will be a 1% increase in price.
d. that for every 6% increase in quantity, there will be a 1% decrease in price.
d
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The equilibrium real interest rate is 5 percent. If the real interest rate is
A) anything other than 5 percent, the supply of loanable funds curve and/or the demand for loanable funds curve will shift to move the real interest rate to 5 percent. B) 6 percent, the demand for loanable funds curve will shift rightward as firms enter the market to borrow at the lower rate. C) 2 percent, there is a shortage of loanable funds. D) 8 percent, there is a surplus of loanable funds. E) 3 percent, then the supply of loanable funds curve will shift leftward as new savers enter the market.
Explain why growth is not necessarily synonymous with development
What will be an ideal response?