Which of the diagrams best portrays an improvement in expected rates of return on investment?
Use the following diagrams for the U.S. economy to answer the following question.
A. A.
B. B.
C. C.
D. D.
C. C.
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If the real interest rate is greater than the nominal interest rate in an economy:
A) inflation must be negative in the economy. B) inflation must be positive in the economy. C) inflation must be zero in the economy. D) the nominal interest rate must be equal to zero.
The Federal Reserve has just purchased bonds in the market, carrying out open market operations. In the short run in the Keynesian model, this would cause the foreign real interest rate to ________ and foreign output to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
The classical economists believed in all the following, EXCEPT
A. the crude version of the quantity theory of money. B. laissez faire. C. the sophisticated version of the quantity theory of money. D. Say's Law.
Concluding that a company is in violation of antitrust laws because it controls over 90 percent of the market is an application of judgment by:
A. comparative advantage. B. performance. C. design. D. structure.