If the interest rate rises, the present discounted value of a stream of payments owed in the future:
a. rises.
b. stays constant.
c. falls.
d. may rise or fall depending on the shape of the stream.
c
Economics
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The labor supply curve is backward bending because at higher wages the income effect eventually dominates the substitution effect
Indicate whether the statement is true or false
Economics
Most people buy salt infrequently and in small quantities. Even a doubling of the price of salt is likely to result in a small decline in the quantity of salt demanded. Therefore
A) the price elasticity of demand for salt is greater than 1 (in absolute value). B) the demand for salt will be perfectly inelastic. C) salt is a normal good. D) the demand for salt is relatively inelastic.
Economics