Which of the following is true if the price of coffee increases?
A. The demand for tea, a substitute good, will decrease.
B. The demand for coffee will increase.
C. The demand for tea, a substitute good, will increase.
D. Both the demand for coffee and tea will increase.
Answer: D
Economics
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During the financial crisis in 2007 and 2008, financial institutions believed that default risks were higher. As a result, there was ________ in the supply of loanable funds and a ________ in the real interest rate
A) a decrease; fall B) an increase; rise C) an increase; fall D) a decrease; rise
Economics
The three broad types of resources used to produce goods and services are also known as:
A) economic systems. B) factors of production. C) production possibilities. D) financial capital.
Economics