If the money rate of interest is 15 percent and the real rate of interest is 5 percent, the inflationary premium is
a. zero.
b. 5 percent.
c. 10 percent.
d. 15 percent.
C
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What is one potential problem with nationalized health care?
A) It might not reduce moral hazard. B) It is guaranteed to solve the principal-agent problem. C) It would be efficient in risk bearing. D) It might cost too much.
When the profits of a corporation are taxed and the dividends paid to stockholders are also taxed
A) the government is engaging in double taxation. B) the government is engaging in capital gains taxation. C) the government is engaging in regressive taxation. D) the government is engaging in progressive taxation.
Bank B receives a deposit of $40,000 . If the value of the money multiplier in the economy is equal to 5, the final change in demand deposits of Bank B will be equal to: a. $40,000
b. $200,000. c. $800,000. d. $150,000.
Which of the following events must cause equilibrium price to rise?
a. demand increases and supply decreases b. demand and supply both decrease c. demand decreases and supply increases d. demand and supply both increase