Suppose you place $10,000 in a retirement fund that earns a nominal interest rate of 9%. If you expect inflation to be 5% or lower, then you are expecting to earn a real interest rate of at least
a. 1.8%.
b. 3%.
c. 4%.
d. 5%.
c. 4%.
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Suppose someone told you that the chain-weighted price index for GDP in a country was 135. Why does this fact not convey much information to you?
What will be an ideal response?
The problem with the strategy of achieving credibility through reputation is that
A) reputations are rarely credible. B) reputations lack any commitment. C) serious costs may be incurred during the period in which reputation is established. D) rules always have a lower cost than reputations in maintaining credibility.
Discuss the difference between first-best and second-best price regulation. In your answer, you should address why governments regulate markets and the difficulties faced when doing so.
What will be an ideal response?
What is the key to fulfilling current customer needs while maximizing long-term value co-creation?
a. Defining the appropriate relationship intensity b. Avoiding companies such as military equipment manufacturers and firms that harm the environment c. Launching hostile takeovers of companies with undervalued assets d. Reduce unit costs that arise from an increase in production