If you as a lender want an increase in purchasing power of 4 percent from making a loan and you set the nominal interest rate at 9 percent, then your
a. real rate of interest is 13 percent.
b. expected rate of inflation is 5 percent.
c. expected rate of inflation is 13 percent.
d. real rate of interest is 36 percent.
b
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According to the above table, if real Gross Domestic Product (GDP) is $25,000, planned saving equals
A) $2,000. B) $3,000. C) $4,000. D) $5,000.
How are pollution and GDP related?
A. only the harm from pollution is included in GDP B. the value of produced goods that lead to pollution are counted in GDP and pollution is not counted C. goods whose production creates pollution are not counted in GDP
Recall the Application about the break-even price for growing switchgrass, a perennial grass that is native to the U.S. plains states and is used to create biofuel, to answer the following question(s).Recall the Application. If the minimum average total cost for switchgrass farmers is $55 per ton and the minimum average variable cost is $40 per ton, then at a price of $35 per ton in the short run the switchgrass farmer will:
A. shut down, that is, bring no switchgrass to market. B. operate and lose money. C. make a zero economic profit. D. make a positive economic profit.
If there is no response in quantity demanded to a change in price, demand is
A) perfectly inelastic. B) perfectly elastic. C) elastic. D) unit-elastic.