An increase in
A) nominal output raises the interest rate while a fall in real output lowers the interest rate, given the price level and the money supply.
B) real output decreases the interest rate while a fall in real output increases the interest rate, given the price level.
C) real output raises the interest rate while a fall in real output lowers the interest rate, given the money supply.
D) nominal output raises the interest rate while a fall in real output lowers the interest rate, given the price level.
E) real output raises the interest rate while a fall in real output lowers the interest rate, given the price level and the money supply.
E
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The quantity of raspberries sold at a local store increases from 100 pints to 1,500 pints when the price is reduced from $4.00 to $1.00. In this situation, the absolute price elasticity of demand for raspberries is approximately
A) 0.69. B) 6.7. C) 1.46. D) 4.3.