A "normal good" is defined as any good in which

A) a rise in its price will reduce quantity demanded.
B) a fall in its price will increase quantity demanded.
C) a rise in income will reduce overall demand.
D) a fall in income will reduce overall demand.

D

Economics

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A financial institution that wants a 5 percent real return on its loans and contemplates a 4 percent annual inflation rate should loan at a nominal interest rate of approximately

A) minus 1 percent. B) 1 percent. C) 9 percent. D) 15 percent. E) 20 percent.

Economics

Kinks in budget constraints always produce non-convexities in choice sets.

Answer the following statement true (T) or false (F)

Economics