When the rate of interest rises, the resulting change in the demand for capital is shown graphically by:
a. a movement down along the demand curve.
b. a rightward shift of the demand curve.
c. a leftward shift of the demand curve.
d. a movement up along the demand curve.
e. an outward rotation of the demand curve.
c
Economics
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When insurance companies offer fair insurance,
A) risk-averse agents always purchase it. B) risk-neutral agents never purchase it. C) risk-loving agents always purchase it. D) nobody would purchase fair insurance.
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Inflation is harmful to society because it often
a. causes consumers' purchasing power to decline b. causes sellers' costs to increase c. causes nominal wages to fall d. causes purchasing power to be redistributed in haphazard ways e. has no effect at all on anyone's purchasing power
Economics