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 96 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
Great answer, keep it coming :)

Laurenleakan

  • Member
  • Posts: 309
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Global Stratification: Income of the World's Nations Global Stratification: Income of the World's Nations
The steel lamination used in an E coil helps increase the magnetic field strength, which helps the ... The steel lamination used in an E coil helps increase the magnetic field strength, which helps the ...
Ten Leading Causes of Death in Low-Income Countries, 2008 Ten Leading Causes of Death in Low-Income Countries, 2008
The growth in demand for oil in China is driven by the growth in demand for personal transport The growth in demand for oil in China is driven by the growth in demand for personal transport
Income per Capita versus Inequality Income per Capita versus Inequality
Construct a Lorenz curve that shows income distribution in this society. Construct a Lorenz curve that shows income distribution in this society.
Video: Mechanics of Sound Animation

For a complete list of videos, visit our video library