Expected real interest rates are the
A) interest rates quoted in the market plus the expected inflation rate.
B) interest rates quoted in the market.
C) expectations of future interest rates.
D) interest rates quoted in the market minus the expected inflation rate.
D
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If 2009 is the reference base period, what is the price index for the CPI basket of goods for 2015 in the above table?
A) 97.3 B) 102.8 C) 128.0 D) zero because the price of Blu-rays fell and the price of water increased
A monopolist faces the inverse demand curve P = 60 - Q. It has variable costs of Q2 so that its marginal costs are 2Q, and it has fixed costs of 30. The monopoly's profit maximizing price is
A) 55. B) 50. C) 45. D) 40.
In a Bertrand oligopoly, firms select ________ and earn ________ economic profit.
A) quantity; zero B) price; positive C) quantity; positive D) price; zero
For any change in net taxes, we can calculate the resulting change in equilibrium GDP by using the following formula:
a. change in GDP = -MPC/(1 - MPC) b. change in GDP = [-MPC/(1 - MPC)]? change in taxes c. change in GDP = MPC ? change in taxes d. change in GDP = MPC/(1 - MPC) e. change in GDP = [-MPC/(1 - MPC)] + change in taxes