Using the exact formula, the nominal interest rate equals:
a. Real interest rate + Actual inflation + (Real interest x Actual inflation).
b. Real interest – Expected inflation.
c. Real interest + Expected inflation + (Real interest x Expected inflation).
d. Real interest – Expected inflation – (Real interest x Expected inflation).
.C
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A natural monopoly is a monopoly that arises from:
A. having an exclusive right to operate in a national park. B. a firm's natural desire to maximize its profit. C. having exclusive control over the natural resources used to produce a good. D. economies of scale.
The total market value of capital assets in the United States is about $30 trillion dollars.
Answer the following statement true (T) or false (F)
A credit market instrument that provides the borrower with an amount of funds that must be repaid at the maturity date along with an interest payment is known as a
A) simple loan. B) fixed-payment loan. C) coupon bond. D) discount bond.
Although rice is a staple of the Japanese diet, the Japanese government has long restricted the importation of rice into Japan. The result of this import quota is:
A) to decrease the price of rice to the Japanese people. B) to decrease the consumer surplus of Japanese rice consumers. C) to decrease the producer surplus of Japanese rice producers. D) a welfare gain for the Japanese people. E) to increase the consumption of rice by the Japanese people.