In stores, it is common to find seasonal products marked down when the season ends. What explains this behavior?
A) The store is trying to increase its customers' demand for the product.
B) The store manager must be trying to drive away customers by selling low quality products.
C) The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen.
D) The law of demand is being used to increase the quantity demanded.
E) The store is trying to increase its consumers' incomes by increasing their purchasing power.
D
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The covered interest rate parity condition can be stated as follows: The interest rate on dollar deposits equals the interest rate on euro deposits ________ the forward ________ on euros against dollars
A) plus; premium B) minus; premium C) plus; discount D) minus; discount E) times; premium
In the real business cycle model, the short-run aggregate supply curve is always the same as ________
A) long-run aggregate supply B) the long-run aggregate demand schedule C) the velocity of money D) the real rate of interest