If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are

Suppose that there is a positive shock to investment demand: that is, at every interest rate, the desired amount of investment rises. In a closed economy with the national saving fixed, the real interest rate will:

A. fall. B. remain constant. C. rise. D. first fall and then rise.

People respond to incentives

A) by ignoring negative incentives and responding to positive incentives only. B) only when they are irrational. C) as they never intentionally make decisions that would leave them worse off. D) when they have low incomes.