Answer:
The answer is: C) There will be an increase in wealth, creating a shift to the right in the demand curve for bonds in France. France can therefore expect permanent lower interest rates in the future.
Explanation:
When the residents of a nation decide to permanently increase their savings, that affects the economy in several ways. At first, it will lower the total demand for products and services (to be able to save money you must spend less) and increase the quantity demanded for bonds. This increase will lower the price (in this case interest rate) of bonds.
When the interest rates of bonds is lower, it means the cost of borrowing money for the general population will also lower. The interest rate commercial banks charge their clients always follow the interest rate of bonds. That will lead to greater investment and spending in the economy, and future economic growth.
Answer:
five subject areas: English, mathematics, reading, science, and writing
Cognitive dissonance, which is the mental discomfort between two contradictory ideas. Customers may experience cognitive dissonance when they spend a lot of money and feel regret even for a purchase that they enjoy.
Answer:
$1 or 100% of the tax
Explanation:
When the price elasticity of demand is 0, it means that the good or service will be purchased regardless of its cost. Very few things have such a low price elasticity, and the fact that this is drug for treating cancer is the reason why that happens. Anyone that can purchase a drug that will keep you alive, will do so as long as you have enough money to do so. Another good with a very low price elasticity, but not 0, is gasoline with a 0.02 to 0.04, and gasoline is a basic necessity also.
The curve for a perfectly inelastic good is vertical. So any increase in taxes will be paid by the customers.
