Suppose the actual inflation rate is less than the anticipated inflation rate. Given this information, we know with certainty that the real rate of interest
A. is more than the nominal rate of interest.
B. is negative.
C. equals the nominal rate of interest.
D. none of these (i.e., more information is needed to answer this question).
Answer: D
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Which of the following is a possible reason for a comparatively steeper demand curve for health care? a. A large increase in the price of health care leads to a more than proportionate fall in the quantity demanded for health care. b. The demand curve for health care is comparatively steeper than other products, because health care is a Giffen good. c. A change in the price of health care
leads to no change in the profit earned by the suppliers. d. A large increase in the income of households leads to a less than proportionate increase in the quantity demanded. e. A large increase in price does not cause a reduction in the purchase of health care by the same proportion.
U.S. income data over the last 75 years suggests that the distribution of income
a. has gradually become more equal over the entire time period. b. has gradually become less equal over the entire time period. c. gradually became less equal until about 1970, then became more equal from 1970 to 2011. d. gradually became more equal until about 1970, then became less equal from 1970 to 2011.
Answer the following questions true (T) or false (F)
1. Average total cost is equal to average variable cost minus average fixed cost. 2. As output increases, average fixed cost gets smaller and smaller. 3. A firm's short-run average total cost curve is parallel to its short-run average variable cost curve.
If the quantity of money demanded is less than quantity of money then interest rate will
A. The same. B. Increase. C. Decrease. D. Indeterminate.