James took out a fixed-interest-rate loan when the CPI was 200 . He expected the CPI to increase to 206 but it actually increased to 204 . The real interest rate he paid is
a. higher than he had expected, and the real value of the loan is higher than he had expected.
b. higher than he had expected, and the real value of the loan is lower than he had expected.
c. lower than he had expected, and the real value of the loan is higher than he had expected.
d. lower then he had expected, and the real value of the loan is lower than he had expected.
a
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Consider the following scenario. Assume the price of gold in London is selling for $1400 an ounce while in New York it is fetching a price of $1450 an ounce
What would an economist say about the efficiency of this market? What would an economist predict about what would happen next?
What would make the demand for labor more elastic?
What will be an ideal response?
A cartel is a group of firms that attempt to collude by coordinating price and output decisions
a. True b. False Indicate whether the statement is true or false
"A reduction in the rate at which stock dividends are taxed will lead to greater investment in the stock market." This is an example of: a. a positive economic statement
b. a negative economic statement. c. the fallacy of composition. d. a normative economic statement.