The ________ interest rate approximately equals the ________ interest rate minus ________
A) nominal; real; depreciation
B) nominal; real; the inflation rate
C) real; nominal; depreciation
D) real; nominal; the inflation rate
D
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A nonmonetary opportunity cost is called a(n) ________, while a cost that involves spending money is called a(n) ________
A) implicit cost; explicit cost B) normal rate of return; asset C) accounting profit; economic profit D) accounting cost; explicit cost
Suppose there are 100 identical firms in the rag industry, and each firm is willing to supply 10 rags at any price. The market supply curve will be a(n)
A) vertical line where Q = 10. B) vertical line where Q = 100. C) vertical line where Q = 1000. D) horizontal line where Q = 1000.
Suppose an event occurs that causes people to gain faith in the ability of Europeans to pay their euro-denominated debt. Suppose that before this happens the exchange rate between the euro and the dollar is .75 euros/dollar. The resulting exchange rate would likely
A. cause the exchange rate to have to be expressed in dollars per euro (because the other way would no longer make sense). B. rise to (perhaps) .9 euros/dollar. C. fall to (perhaps) .6 euros/dollar. D. remain unchanged.
If a country is a net importer of a good, domestic suppliers will supply ________ of that good after it opens itself to international trade.
A. the same amount B. none C. less D. more