If the borrower and lender agree to a loan at 8 percent when the inflation rate is 3 percent, then 8 percent is the ________ interest rate and 5 percent is the ________ interest rate.
A. real; relative
B. nominal; real
C. relative; nominal
D. real; nominal
Answer: B
You might also like to view...
Suppose that additional units of capital affect the marginal productivity of labor. This is not unrealistic. Word processors increase the marginal productivity of secretaries. On the other hand, robotic equipment can completely replace a worker and, thereby, lower the marginal productivity of labor. Given this possibility, determine the conditions under which isoquants will not be convex (i.e.,
concave). What will be an ideal response?
Which of the following is the correct way to calculate total cost?
A. TVC - TFC B. ATC × q C. TFC × TVC D. TR - TVC
If the automobile workers' union successfully negotiates a wage increase for its members, how does the wage hike affect the supply of automobiles?
A) The supply increases. B) The supply decreases. C) The quantity supplied increases. D) The quantity supplied decreases. E) Both answers B and D are correct.
An example of a monopoly based on control of a key resource is
A) Microsoft's Windows operating system. B) Major League Baseball. C) NASA. D) the U.S. Food and Drug Administration.