The price of a new car is $40,000 while the price of a five-year old car of the same brand is $16,000. The next year the price of the new car increases to $44,000 and the price of a five-year old car of the same brand is $17,600
The relative price of the used car A) decreased by $2,400.
B) decreased by 10 percent.
C) increased by 10 percent.
D) remained constant at 0.4.
D
Economics
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The money rate of interest will be less than the real rate of interest when decision makers anticipate
a. stable prices in the future. b. falling prices in the future. c. inflation in the future. d. that the money rate of interest will decline.
Economics
A decrease in the reserve requirement ________ bank reserves and ________ the money supply
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Economics