When would it be plausible to describe the demand for a product by drawing a straight line, Q = a - bP?
A. Only if no important factors other than price affect demand
B. In the vast majority of scenarios
C. Practically never
D. If we believe that factors other than price alone determine demand
A. Only if no important factors other than price affect demand
Economics
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"When there is a shortage of loanable funds, the real interest rate will increase." Explain whether the previous statement is correct or not
What will be an ideal response?
Economics
As part of the "wealth channel of monetary policy," a lower money supply __________ interest rates and thus __________ bond prices
A) raises; raises B) raises; lowers C) lowers; raises D) lowers; lowers
Economics