A decrease in the inflation rate will lead to a ________ nominal interest rate, which will ________ the debt-to-GDP ratio
A) higher; raise
B) higher; reduce
C) lower; raise
D) lower; reduce
D
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Three firms agree to operate as a monopoly and charge the monopoly price of $80 for their product and (jointly) produce the monopoly quantity of 5,000 units. If the competitive price for the product is $40, under the Clayton Act these three firms face treble damages of ________.
A) $3,000,000 B) $1,000,000 C) $200,000 D) $600,000
Which of the following is an example of a tie-in sale?
A. In order to buy Dell Computers, you must also buy Microsoft Windows to get the warranty. B. Bus rides are cheaper for senior citizens than for other people. C. Two companies merge to form one company. D. Prices are set just low enough to prevent other firms from entering the market.
All the following would be a possible loan that the International Monetary Fund might make EXCEPT
A. long-term loans to countries which are having problems in repaying existing debts. B. long-term loans to a nation's government which support growth promoting projects. C. a loan to a private firm. D. short-term loans to a nation's government.
With a proportional tax, higher-income persons will pay:
A. The same amount of taxes as lower-income persons B. A bigger amount in taxes compared to lower-income persons C. A higher proportion of their income in taxes than lower-income persons D. A higher marginal tax rate as their incomes rise