If inflation is 10% and the nominal interest rate equals 16.6% the real interest rate is equal to
A) 6.6%.
B) 6%.
C) -6.6%.
D) zero.
B
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Which of the following statements is true of creative destruction?
A) Creative destruction is encouraged in economies with extractive institutions. B) Creative destruction is a phenomenon that was mostly prevalent before the year 1800. C) Creative destruction is generally bad for an economy. D) Creative destruction creates losses for some economic agents and benefits for others.
Describe the two sources of economies of scale and how these economies of scale lead to intraindustry trade
What will be an ideal response?
When a firm increased its output by one unit, its AC rose from $45 to $50. This implies that its MC is
A) $5. B) between $45 and $50. C) greater than $50. D) Cannot be determined from the above information
If the Fed decreases the money supply, we should expect the interest rate
a. to fall, spending on automobiles and business investment spending to rise, and the price of bonds to increase b. to rise, spending on automobiles and business investment spending to fall, and the price of bonds to decrease c. to rise, spending on automobiles and business investment spending to fall, and the price of bonds to increase d. to fall, spending on automobiles and business investment spending to fall, and the price of bonds to decrease e. to rise, spending on automobiles to fall, business investment to rise, and the price of bonds to decrease