Refer to the scenario above. If Jack has to decide between the number of paintings and sculptures he wants to make in the given time, which of the following will best represent his options?

Which of the following are likely to increase investment and as a result, aggregate demand?

a. decreased demand for investment goods b. falling real interest rates c. rising real interest rates d. increased business taxes

The fact that travel on buses fell as incomes increased in many cities suggests that

a. bus travel is a normal good b. the law of demand does not apply to bus travel c. bus travel is an inferior good d. there are no good substitute goods for bus travel