A country reduces its government budget deficit and also makes political reforms that lead people to believe this country's assets are less risky. Given the combination of a reduced deficit and lower asset risk, what happens to the interest rate?

For which of the following would the supply likely be most inelastic?

A) aircraft carrier B) canned soup C) toy airplane D) t-shirt E) bottled water

An overall fall in prices in the economy is called:

A. inflation. B. deflation. C. core inflation. D. core deflation.