Suppose you came across the following headline in a story of a daily newspaper: "Automobile prices are so high right now that there must be a shortage. As a consequence not everyone who needs an automobile will be able to buy one
" Is this statement necessarily correct?
First of all we have to conclude that all buyers who wish to buy automobiles at the prevailing prices will be able to do so. There will of course be others who are simply unwilling or unable to pay the current price. Secondly, we cannot say that there is a shortage at the current price. If there were then the price would simply rise to choke off the excess demand.
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If there is a fall in the interest rate, _____.
(A) Businesses will be more likely to expand their facilities. (B) The unemployment rate will most likely rise. (C) Consumers will be less likely to buy more expensive items. (D) There will be a downturn in the economy.
Both stocks and bonds have maturity dates
Indicate whether the statement is true or false