When the anticipated rate of inflation declines, the real rate of interest
A) increases.
B) decreases.
C) is not affected.
D) increases exponentially.
Answer: A
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Define the terms "production" and "production function." Differentiate between the short run and the long run based on the usage of inputs by a firm
What will be an ideal response?
Refer to Figure 5-8. Suppose the emissions reduction target is currently established at 8 million tons. Should society undertake to reduce an additional 1 million tons so that the total reduction is 9 million tons?
A) No, because there is a net cost represented by the area B + C. B) Yes, because toxic fumes are dangerous and must be eliminated at any cost. C) No, because the firms will pass the additional cost on to consumers. D) Yes, because the marginal benefit exceeds the marginal cost at 8 million tons.
Strategic behavior occurs when a firm takes a particular strategy without considering the policies of its rivals
a. True b. False Indicate whether the statement is true or false
If an economy is operating at a point inside the production possibilities curve,
What will be an ideal response?