If People Believe That Prices Are Going to Be Higher

question 5

Multiple Choice

If people believe that prices are going to be higher in the future then they are today, they will

• A)wait until the future to purchase the things they wand
• B)decrease their demand now
• C)increase their demand now
• D)increase their supply now
• E)save more today so they have the income to buy more in the future

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Definitions:

Null Hypothesis

A statement suggesting that there is no significant effect or difference in a given population, serving as a starting assumption for statistical significance testing.

Internal Growth Rate

The maximum rate at which a company can expand using only internally generated financing without resorting to external financing.

Return On Assets

A financial metric showing the profitability of a company in relation to its overall assets.