The formula for an infinite sum is 1 / (1 - b), where b = (1 - reserve ratio).
Answer the following statement true (T) or false (F)
True
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As long as prices are rising over time, then
a. the nominal interest rate exceeds the real interest rate. b. the real interest rate exceeds the nominal interest rate. c. the real interest rate is positive. d. the nominal interest rate is a better indicator than the real interest rate of how fast the purchasing power of your bank account is changing over time.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
The largest corporate merger in the history of the world was between
A. AOL and Time Warner. B. Pfizer and Warner-Lambert. C. Vodafone Air Touch and Mannesmann. D. Exxon and Mobil.
Monopolistically competitive firms fail to fully realize their economies of scale.
Answer the following statement true (T) or false (F)