This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If an increase in income leads to a decrease in the demand for salami, then salami is A) a ... (Read 101 times)

stephzh

  • Hero Member
  • *****
  • Posts: 556
on: Jun 29, 2018
If an increase in income leads to a decrease in the demand for salami, then salami is
 
  A) a necessity. B) a neutral good. C) a normal good. D) an inferior good.

Question 2

Explain why the real interest rate is the opportunity cost of loanable funds.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

verrinzo

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

The real interest rate is the opportunity cost of loanable funds because the real interest rate measures what is forgone by using the funds. If the funds are loaned, then the real interest rate is received. If the funds are borrowed, then the real interest is paid for the funds. The real interest rate forgone when funds are used either to buy consumption goods and services or to invest in new capital goods is the opportunity cost of not saving or not lending those funds.


stephzh

  • Member
  • Posts: 556
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

rachel

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

An implantable cardiovert-defibrillator: A dual-chamber ICD device with a pulse generator is implant An implantable cardiovert-defibrillator: A dual-chamber ICD device with a pulse generator is implant
Global Stratification: Income of the World's Nations Global Stratification: Income of the World's Nations
The demand for cheap coal to generate electrical power is rising The demand for cheap coal to generate electrical power is rising
Relationship between Income Inequality and Sociopolitical Instability Relationship between Income Inequality and Sociopolitical Instability
Relationship between Income per Capita and Population Growth Relationship between Income per Capita and Population Growth
Lone-parent household income and the degree of vulnerability Lone-parent household income and the degree of vulnerability
Video: Structures that affect circulation - kidneys and blood volume and skeletal muscle pumping

For a complete list of videos, visit our video library