Which of the Following Could Cause an Increase in the Demand

question 76

Multiple Choice

Which of the following could cause an increase in the demand for peanut butter?  

• A) a decrease in consumer income 
• B) a increase in the supply of peanut butter 
• C) a decrease in the price of bread 
• D) a drought in Georgia that destroys 30 percent of the peanut crop

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Definitions:

Nominal Rate

The advertised or stated rate of interest, not including the effects of inflation or compounding.

RRSP

Registered Retirement Savings Plan, a savings and investment vehicle for Canadians to save for retirement in a tax-efficient way.

Compounded Rate

The rate at which interest is calculated on the initial principal and the accumulated interest of previous periods.

Compounded Monthly

The calculation of interest on both the initial principal and the accumulated interest from previous months.