People will want to buy fewer bonds and the interest rate will rise, as the price level
a) falls by more than 50 percent.
b) falls by less than 50 percent.
c) remains constant.
d) rises.
Ans: d) rises.
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Using the figure above, suppose Starbucks charges $4.50 per cup for its latte. Which of the following is true?
i. At this price, the demand for Starbucks latte is elastic. ii. If Starbucks lowers the price of its latte, its revenue will decrease. iii. If Starbucks raises the price of its latte, the demand for it will become less elastic. A) Only iii B) Only i C) Only ii D) i and ii E) i and iii
What is the best explanation for why China and India have received so much international interest and foreign investment?
A) Their large populations B) Their geographic location C) Their control over natural resources D) Government incentives provided to foreign firms