The money rate of interest is the
a. real rate of interest minus the inflationary premium.
b. real rate of interest plus the inflationary premium.
c. real rate of interest divided by the inflationary premium.
d. inflationary premium minus the real interest rate.
B
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Which of the following statements is true?
A) In the long run, the average cost curve is always downward sloping. B) In the long run, the quantities of all inputs are fixed. C) In the long run, the firm's fixed costs are greater than its variable costs. D) In the long run, all costs are variable costs. E) In the long run, the total variable cost equals the total fixed cost.
If, as your taxable income decreases, you pay a larger percentage of your taxable income in taxes, then the tax is
A) regressive. B) progressive. C) proportional. D) unfair.
In the Cournot duopoly model, each of the two firms, in determining its profit-maximizing price-output level, assumes that the other firm's ____ will not change
a. price b. output c. marketing strategy d. inventory e. none of the above
If Melanie had $200,000 of income and spent $180,000 on consumption in 2010 and had $300,000 of income and spent $240,000 on consumption in 2011: a. her APC in 2010 was 0.8. b. her APC in 2011 was 0.9. c. her MPC was 0.6
d. her MPC was 0.8.