The Relationship Between Price and Quantity Demanded,other Things Being Equal,is

question 108

Multiple Choice

The relationship between price and quantity demanded,other things being equal,is

• A)negative in some economies but positive in others.
• B)negative in market-based economies but positive in regulated economies.
• C)always negative in all economies.
• D)positive in market-based economies but negative in regulated economies.
• E)always positive in all economies.

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Definitions:

Inflation

A rise in the general level of prices in an economy; an increase in an economy’s price level.

Equilibrium Interest Rate

The interest rate at which the demand for funds equals the supply of funds in the financial markets.

Allocation Of Capital

The process of distributing financial resources among different projects or sectors within an economy or organization to maximize returns.

Real Interest Rate

The interest rate expressed in dollars of constant value (adjusted for inflation) and equal to the nominal interest rate less the expected rate of inflation.