Answer:
The correct answer is option C.
Explanation:
When the interest rate falls below the normal level, people expect the interest rates to rise in future and bond prices to fall. This causes investors to sell the bonds at present so that they can buy bonds when they are selling at lower prices in future as of result of an increase in interest rates. Money demand will, as a result, will decrease.
Explanation:
Trade offs are something in which there are two things and we choose one of them according to our own preference or need. This is and should be our personal decision, but when Corporations and Governments decide on what to choose between two things, there would might be a negative impact on someone's life. He might feel controlled by the corporations and governments. For example, if corporations of CNG decides with the government that it is better for consumers to use CNG than Petrol in their cars, and lowers taxes on CNG and encourage consumers to shift towards CNG, then this trade off will have an impact of being controlled by the big giants. The choice should be of consumer's. The consumer should be the one who will trade off between things who are preferable for him.
Scarcity is to not have enough resources to fullfil a societies wants and needs. The 3 basic questions a society must ask inorder to deal with this are. what to produce? how to produce? and, for whom to produce? whoever answers those questions is how I societies economic system is decided. Though to answer your question in short, the basic goal of a society is to deal with scarcity, they achieve this by producing as much resources as possible with the little resources available.
Answer:
see below
Explanation:
A positive correlation signifies that an increase in one variable results in the other variable moving in the same direction. Because supply and price are positively correlated, a price increase will increases supply. The opposite is also true.
Suppliers are business people whose main objective is to make profits. Higher prices give higher margins. Suppliers make higher profits when prices are high. The possibility of making higher profits motivates suppliers to increase supplies to the market. On the other hand, low prices may result in losses. When prices are low, supplies will shy away from the market to avoid making losses.
