If the Price of a Natural Resource Is Expected to Rise

question 52

Multiple Choice

If the price of a natural resource is expected to rise at a rate that exceeds the interest rate,demand ________ and supply ________.

• A)decreases;increases
• B)increases;decreases
• C)increases;increases
• D)decreases;decreases
• E)increases;does not change

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Definitions:

Interest on a Savings Account

The amount paid by a bank or financial institution to depositors for holding money in a savings account.

Municipal Bonds

Municipal bonds are debt securities issued by states, cities, and other governmental entities to fund public projects, and typically offer tax-free interest payments to investors.

Tax-exempt Interest

Interest income that is not subject to federal income tax, often received from bonds issued by state and municipalities.

Bonds Issued

Debt securities released by entities such as corporations or governments to raise capital.