In the contemporary U.S. economy, the best example of fiat money would be
A) coins issued by the U.S. Treasury.
B) deposits at all depository institutions.
C) deposits at commercial banks, but not deposits at other depository institutions.
D) Federal Reserve Notes.
D
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Foreign investment is considered direct only when
a. the foreign firm owns what is considered a controlling interest b. the foreign firm owns at least 50.1 percent of the company c. all foreign stockholders together own at least forty percent of the company d. the foreign firm has control of key patents e. none of the above
If demand increases in a perfectly competitive market,
a. the market price will fall b. firms already in the market will supply more output c. new firms will enter the market d. the short-run market supply curve will shift to the right e. each firm's marginal cost curve will shift to the right
Loretta agrees to lend Ted $500,000 to buy computers for his consulting firm. They agree to a nominal interest rate of 8%. Both expect the inflation rate to be 2%. (a)Calculate the expected real interest rate.(b)If inflation turns out to be 3% over the life of the loan, what is the real interest rate? Who gains from unexpectedly high inflation, Loretta or Ted?(c)If inflation turns out to be 1% over the life of the loan, what is the real interest rate? Who gains from unexpectedly low inflation, Loretta or Ted?
What will be an ideal response?
Since the end of the 2008-2009 recession, remittances from illegal immigrants in the United States to Mexico
A. continued to fall. B. did not noticeably change. C. began to noticeably decrease. D. have begun to increase.