If a 5 percent change in the price of a good elicited a 5 percent change in the quantity demanded of the good, we would say that over this range of prices the good has a(n)

Which of the following changes is observed when the Fed increases the federal funds rate? a. Inflation is brought to an immediate halt

b. The inflation rate increases for several months, but then begins to decrease. c. Major banks try to offset this change by lowering the interest rates they charge on loans. d. Major banks try to offset this change by lowering the interest rates they pay on savings deposits. e. Major banks raise the prime interest rate that they charge to their best customers.

The present value of the future is

A) not related to the interest rate. B) inversely related to the interest rate. C) positively related to the interest rate. D) equal to economic profit