An increase in the market interest rate, other things equal, will _____

a. have no effect on investment
b. increase the amount invested since the rate of return will be lower
c. increase the amount invested because income will increase
d. reduce the amount invested because the opportunity costs of investing will be higher
e. increase the amount invested because the rate of return will be higher

d

Economics

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If a 5 percent increase in price causes a 10 percent increase in quantity supplied, then supply is

A. infinite. B. unit elastic. C. elastic. D. inelastic.

Economics

The demand for corn has increased in May without any change in supply. Eight months later there still has been no change in corn prices. This is an example of a

A. sticky price. B. macroeconomic price. C. price floor. D. price control.

Economics