The price elasticity of demand is 5.0 if a 10 percent increase in the price results in a ________ decrease in the quantity demanded

We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will decrease when

A) supply increases and demand decreases B) supply decreases and demand increases. C) supply and demand for a product simultaneously decrease. D) supply and demand for a product simultaneously increase.

Profitable investment is most effectively promoted when:

a. the money supply and price level are stable. b. inflation is rising rapidly c. monetary policy is unanticipated. d. persistent inflation increases uncertainty.