What do real interest rates account for that nominal interest rates do not?
Unlike nominal interest rates, real interest rates account for inflation and changes in the value of the dollar over time.
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Stock prices are
A) based less on the current profitability of firms than on their expected future profitability. B) based equally on the current profitability of firms and on their expected future profitability. C) not based on the current profitability of firms or on their expected future profitability. D) based more on the current profitability of firms than on their expected future profitability.
Which of the following would prevent a labor market from being classified as perfectly competitive?
a. It is difficult for new workers to enter the market. b. All workers have the same abilities. c. Exiting the market is easy for workers who are currently in the market. d. Both buyers and sellers of labor are well-informed about market conditions. e. Each firm hires only a tiny fraction of the total labor in the market.
Define the following terms completely and concisely
a. marginal revenue b. average revenue c. optimal decision d. satisficing e. marginal profit
Saving is a basic source of investment financing.
Answer the following statement true (T) or false (F)