When demand changes and the demand curve shifts, equilibrium ...

[urbanoutfitters]

When demand changes and the demand curve shifts, equilibrium price and equilibrium quantity change in the same direction.
 
  Indicate whether the statement is true or false

Question 2

Suppose you have 400 and the inflation rate is 4 percent. In order to earn a real return of 20 on your investment, the nominal interest rate must be
 
  A) 1 percent. B) 5 percent. C) 9 percent. D) 12 percent.

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Answer to Question 1

TRUE

Answer to Question 2

C