Author Question: Because personal tastes differ, what are substitutes for one person need not be substitutes for ... (Read 109 times)

maegan_martin · **on:** Jun 30, 2018

Because personal tastes differ, what are substitutes for one person need not be substitutes for another person.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Holding all other things constant, when the price level falls, interest rates:
a. rise and firms want to borrow more for new plants and equipment and households want to borrow more for homebuilding.
b. rise and firms want to borrow more for new plants and equipment and households want to borrow less for homebuilding.
c. falls and firms want to borrow less for new plants and equipment and households want to borrow more for homebuilding.
d. falls and firms want to borrow more for new plants and equipment and households want to borrow more for homebuilding.