If the nominal interest rate is 5 percent and the rate of inflation is 9 percent, then the real interest rate is

Assume that at the current market price of $4 per unit of a good, you are willing and able to buy 20 units. Last year at a price of $4 per unit, you would have purchased 30 units. What is most likely to have happened over the last year?

a. Demand has increased b. Demand has decreased c. Supply has increased d. Supply has decreased e. Quantity supplied has decreased

Consider the case of complementary goods. An increase in the demand for peanut butter can be caused by a(n)

a. decrease in consumer income b. increase in the price of jams, jellies, and preserves c. decrease in the price of bread d. drought in Georgia that destroyed 30 percent of the peanut crop e. decrease in the price of bologna