In an inflationary atmosphere that everyone anticipates will persist, lenders will
A) desire a lower nominal interest rate to increase the real rate.
B) desire a higher nominal interest rate to protect against the inflation.
C) tend to see the real rate of interest increase, particularly if the inflation is unforeseen.
D) have the real rate of interest guaranteed by the Federal Reserve Board.
Answer: B
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Usually an abundance of natural resources ________ labor productivity.
A. increases B. has no effect on C. decreases D. doubles
When we cannot produce more of any good without giving up some other good that we value more highly, we have achieved
A) production. B) equity. C) allocative efficiency. D) the production point where the marginal benefit exceeds the marginal cost by as much as possible.
In the above figure, which movement illustrates the impact of the price level and money wage rate falling at the same rate?
A) E to H B) E to K C) E to J D) E to G
Which of the following pairs of market types are both characterized by having a large number of firms?
A) monopoly and oligopoly B) monopoly and monopolistic competition C) perfect competition and oligopoly D) perfect competition and monopolistic competition