If consumers' incomes increase and the demand for bus rides ...

[newyorker26]

If consumers' incomes increase and the demand for bus rides decreases
 
  A) bus rides are a normal good.
  B) consumers are behaving irrationally.
  C) bus rides are an inferior good.
  D) none of the above.

Question 2

The real interest rate is found by dividing the nominal interest rate by the CPI. Is this statement true or false?
 
  What will be an ideal response?

[allisonblackmore]

Answer to Question 1

C

Answer to Question 2

The statement is false. The real interest rate equals the nominal interest rate minus the inflation rate, not divided by it.