As Income Rises

question 304

Multiple Choice

As income rises

• A)money demand rises, so the interest rate rises.
• B)money demand rises, so the interest rate falls
• C)money demand falls, so the interest rate rises.
• D)money demand falls, so the interest rate falls.

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Definitions:

High Barriers

Obstacles that make it difficult for new competitors to enter a market, including high start-up costs, complex regulations, or strong brand loyalty.

Market Entry

The strategy or process involved in introducing a new product or service to a target market.

Unregulated Monopolists

Firms that maintain exclusive control over a particular market or product without any oversight or restrictions from regulatory bodies.

Oligopolistic Markets

Markets dominated by a few large suppliers who have some control over the prices due to the limited number of competitors.