If you expect the inflation rate to be 4 percent next year and a one year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is
A) -3 percent.
B) -2 percent.
C) 3 percent.
D) 7 percent.
C
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AC is lower in the long run than in the short run because
a. prices often fall, allowing savings on purchases. b. inputs can be combined more efficiently in the long run. c. over time the prices of all inputs tend to decrease. d. AFC falls with output over all ranges of output.
Profit is maximized at the output at which marginal revenue equals marginal cost
a. True b. False Indicate whether the statement is true or false
The school of engineering at a modern university would be a supporter of the new
a. consumption theory. b. growth theory. c. monetary theory. d. construction theory.
Suppose a bank has $160,000 in deposits and a required reserve ratio of 10 percent. Then required reserves are
A. $1,600,000. B. $160,000. C. $16,000. D. $1,600.