Evidence from the United States during the period 1973-2002 indicates that the value of the dollar and the measure of the ________ interest rate rose and fell together
A) real
B) nominal
C) expected
D) actual
A
You might also like to view...
Entrepreneurs tend to take greater risks if low tax rates offer greater after-tax profit potentials. The government's decision to offer low tax rates to entrepreneurs is:
A. providing room for an economic expansion. B. providing an incentive, in the hopes that more entrepreneurs will take risk and create economic growth. C. providing a disincentive, in the hopes that more entrepreneurs will avoid risk and not grow. D. providing a disincentive, in the hopes that entrepreneurs will not get into tax default after assuming too much risk.
When firms leave a perfectly competitive market, then, other things remaining unchanged:
a. the market supply will decrease but the market price will rise. b. both the market supply and the market price will fall. c. both the market demand and the price will increase. d. the market demand will decrease but the market price will rise. e. both the market demand and the market supply will decrease.
As the time to respond to a change in market conditions increases, the odds of supply being elastic: a. Increase
b. Decrease. c. Stay the same. d. Cannot be determined.
When there is reason to think that the existing structure of incentives will cause individuals in the market to act in ways that are inconsistent with ideal economic efficiency, economists say that
a. market failure is present. b. democratic political decision-making will lead to the ideal efficient outcome. c. government action, however well intended, cannot improve the situation. d. government failure is present.