Other things constant, an increase in the expected inflation rate will
a. decrease the inflationary premium.
b. increase money (nominal) interest rates.
c. increase the supply of loanable funds.
d. decrease the money interest rate.
B
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Mary and Jane are partners in a business. Their business is growing but has not yet reached the point where they can afford a new delivery truck. Jane owns an old truck that she has not been using. She decides to donate it to their business for free
A) This transaction (donation) involves no economic cost. B) This transaction involves both economic cost and accounting cost. C) This transaction involves economic cost but no accounting cost. D) This transaction involves no economic cost and no accounting cost.
To be binding, a price floor must be set below the equilibrium price
a. True b. False Indicate whether the statement is true or false
When a monopolist is maximizing profit, which of the following conditions will always be satisfied?
a. P = MC b. MR = AVC c. P = ATC d. MR = MC
A person who is risk averse will like gaining $1,000 more than they will dislike losing $1,000
a. True b. False Indicate whether the statement is true or false