What is the real interest rate if the nominal interest rate is 7 percent and the expected inflation rate is 7 percent?
Ans: 0 percent
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A decrease in the reserve requirement
A) decreases the money supply, which leads to decreased interest rates and a rise in investment spending. B) increases the money supply, which leads to increased interest rates and a fall in investment spending. C) increases the money supply, which leads to decreased interest rates and a rise in investment spending. D) decreases the money supply, which leads to increased interest rates and a fall in investment spending.
Which of the following information about fiat money is false?
A) It must be issued by a sanctioned monetary authority. B) It serves as a medium of exchange. C) It has virtually no intrinsic value. D) All of the above statements about fiat money are true.
List and describe the two areas of positive economics
What will be an ideal response?
The purpose of a cartel is to:
a. promote product innovation. b. increase market competition. c. act like a monopoly. d. diversify operations. e. decrease market concentration.