If product prices decrease more than nominal wages decrease, the real value of wages will increase

Indicate whether the statement is true or false


TRUE

Economics

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A nation's market-risk premium is related directly to the:

a. Volatility of central bank policies due to unpredictable changes in major macroeconomic variables. b. Volatility of a company's cash flows due to predictable and quantifiable changes in major macroeconomic variables. c. Unpredictable changes in market structure, such as shifts from pure competition to oligopoly or oligopoly to monopoly. d. A company's inability to market products in a recession or period of general disruption. e. Volatility of a company's cash flows due to unpredictable changes in major macroeconomic variables.

Economics

Refer to Figure 21-6. The market is in equilibrium. If the government budget deficit rises, which of the following would you expect to see?

A) The quantity of loanable funds demanded by firms will fall below $120 million. B) The interest rate will fall below 4 percent. C) The quantity of loanable funds demanded by firms will rise above $120 million. D) The budget deficit will have no impact on the quantity of loanable funds demanded by firms.

Economics

Short-term loans between banks are called

A) federal funds. B) repurchase agreements. C) repos. D) discount loans.

Economics

The game in the figure shown is a version of:



A. a sequential game.
B. a simultaneous game.
C. a cooperative game.
D. an ultimatum.

Economics