The rate at which units of one product can be exchanged for units of another product is called the terms of trade
Indicate whether the statement is true or false
TRUE
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If the inflation rate is greater than the nominal interest rate, then the
A) real interest rate will be negative. B) real interest rate will be positive. C) inflation rate will increase. D) inflation rate will decrease. E) nominal interest rate will be negative.
Which of the following statements about gold jewelry and round-trip bus tickets to Bismarck, North Dakota, is most likely to be correct?
a. They are both inferior goods. b. Their demand curves probably are quite similar. c. They are complements. d. They are substitutes. e. They are unrelated.
The process by which financial institutions accept savings from businesses, households and governments and lend the savings to other businesses, households and governments is
A. adverse selection. B. moral hazard. C. asymmetric information. D. financial intermediation.
Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $150 and is a monopolistically competitive firm. To maximize profits in the short run, this firm should set a price of
A. $18. B. $22. C. $23. D. $25.