When determining interest rates, the loanable funds model is more useful when we are concerned with the determinants of the ________, and the money market model is more useful when we are concerned with the determinants of the ________
A) long-term real interest rate; short-term nominal interest rate
B) short-term real interest rate; long-term nominal interest rate
C) short-term real interest rate; short-term nominal interest rate
D) long-term real interest rate; long-term nominal interest rate
A
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The higher the default risk on a bond, the higher the interest rate will be
Indicate whether the statement is true or false
A rise in foreign productivity tends to __________ foreign prices and causes the dollar to __________ relative to the foreign currency
A) raise; appreciate B) raise; depreciate C) lower; appreciate D) lower; depreciate
Your company has recently requested that you travel to Dhaka, Bangladesh, to work on negotiations for a new factory to be located in one of the port cities. Your travel agent provides a list of several hundred local hotels and a Sheraton. In this case, the Sheraton brand-name is likely to be used as a signal of
a. perceived differences that are not likely to exist among your various options. b. quality when quality cannot be easily judged. c. inefficiency in markets characterized by recognizable brand names. d. the quality of general lodging accommodations in Dhaka.
In 2008–2009, the U.S. economy provided a
A. healthy climate for investment spending. B. change in aggregate demand that fostered more capital formation. C. sluggish climate for investment spending. D. booming economy that spurred investment spending.