Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?

The "rational expectations revolution" refers to a substantial change in the thinking of ________

A) households and businesses B) policy makers C) macroeconomists D) elected officials

For every $100 in assets, a bank has $40 in interest-rate sensitive assets, and the other $60 in non-interest-rate sensitive assets. The same bank has $50 for every $100 in liabilities in interest-rate sensitive liabilities, the other $50 are in liabilities that are not interest-rate sensitive. If the interest rate on assets increases from 5 to 6 percent, and the interest rate on liabilities increases from 3 to 4 percent, the impact on the bank's profits per $100 of assets will be:

A. a decrease of $0.10. B. a reduction of $1.00. C. an increase of $0.10. D. zero since the interest rates on assets and liabilities increased by the same amount.