A bank seeks a 4% real return on its loans and predicts a 4% annual rate of inflation. It should therefore charge a nominal interest rate of
A) 0%.
B) 1%.
C) 4%.
D) 8%.
E) 12%.
D
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A fall in the user cost of capital
A) could occur as a result of a higher depreciation rate. B) would lead to more capital-intensive methods of production. C) would lead to less capital-intensive methods of production. D) could occur as a result of a decrease in the marginal product of capital.
What are the three phases of antitrust policy in the United States, since 1890?
a. 1890 to 1914, the rule of reason; 1914 to the early 1980s, per se; since then, the rule of reason b. 1890 to 1914, per se; 1914 to the early 1980s, the rule of reason; since then, per se c. 1890 to 1914, the rule of reason; 1914 to the early 1980s, per se; since then, no antitrust policy d. 1890 to 1914, the rule of reason; 1914 to the early 1980s, per se; since then, a period of rate of return regulation e. 1890 to 1914, the rule of reason; 1914 to the early 1980s, per se; since then, a period of nationalization
Which of the following is not true in the long run under perfect competition? a. There is no incentive for firms to enter or exit the industry. b. Economic profit is zero
c. Long-run marginal cost is minimized. d. Long-run average total cost is minimized.
Firms operating in competitive markets have little choice but to innovate
a. True b. False Indicate whether the statement is true or false