In a market economy, we know that a resource has become scarcer when
a. its price rises relative to other prices.
b. it is non-renewable and some of it is used.
c. people search for substitutes.
d. All of the above are correct.
a
Economics
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Why do banks create money? Do they create money to help the Federal Reserve control the money supply or is there a more basic reason?
What will be an ideal response?
Economics
Based on our understanding of the determinants of the interest rate and bond prices, we know that a reduction in income will cause
A) an increase in bond prices and an increase in the interest rate (i). B) a reduction in bond prices and an increase in i. C) an increase in bond prices and a reduction in i. D) a reduction in bond prices and a reduction in i. E) none of the above
Economics