Woody wants to open a pet store and needs to buy a building. Both the nominal interest rate and the inflation rate increase by 2 percent. Now, Woody
a. will not buy the building.
b. is more likely to buy the building
c. is less likely to buy the building.
d. is just as likely to buy the building as before.
d
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In the production possibilities model, the vertical axis measures ________ and the horizontal axis measures ________
A) people's wants; the quantity of a good or service B) the quantity of a good or service; time C) the price of a good or service; the price of another good or service D) the price of a good or service; the quantity of the good or service E) the quantity of a good or service; the quantity of another good or service
In closely held firms, the manager-stockholder conflict is
A) worse than in the larger firm because there is no incentive for the individual stockholder to monitor managers. B) the same as in publicly held firms. C) less severe than in the larger firm because there is an incentive for the major stockholder to monitor managers. D) less pronounced than in large public companies, because the manager is the owner.
When money provides a yardstick that allows individuals to compare the relative values of goods and services, it is functioning as a
A) standard of deferred payment. B) medium of exchange. C) unit of accounting. D) store of value.
The cost of producing one more unit of a good or service that is paid by the producer
A) has to be equal to the benefit that the consumer derives from that good. B) is equal to the cost borne by people other than the producer. C) is the marginal private cost. D) is the marginal external cost.