When money supply __________, the real rate of interest __________
A) increases; falls
B) increases; rises
C) decreases; rises
D) increases; remains unchanged
D
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The circular flow is used to make the point that
A) unemployment only occurs during a recession. B) production generates income. C) rising prices never occur during times of unemployment. D) households purchase factors of production from firms.
Suppose that Mighty Mike's Sandwich Shop was started in 1998 and 100 percent of the $250,000 needed to start up the company was raised by selling shares of stock. In 2000, the company distributed its entire profit of $15,000 to shareholders
If the market interest rate is 5 percent, what is the level of economic profit earned by the firm's stockholders?
Inflation redistributes income to a greater extent when the inflation is unanticipated compared to when the inflation is anticipated
Indicate whether the statement is true or false
Inflation rates over the last 40 years have generally:
A. decreased around the world. B. increased around the world. C. unchanged for developing nations and decreased for developed nations. D. decreased for developing nations and increased for developed nations.