The real interest rate is calculated by subtracting inflation from the nominal interest rate
a. True
b. False
Indicate whether the statement is true or false
True
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Because workers in the United States work fewer hours per week, on average, than they did over 100 years ago,
A) workers in the United States are worse off than they were over 100 years ago. B) GDP is lower than it would be if U.S. workers worked the same workweek they had 100 years ago. C) GDP is higher than it would be if U.S. workers worked the same workweek they had 100 years ago. D) workers in the United States earn less income than they did over 100 years ago.
George is trying to forecast the future price of IBM's common stock. To do so he makes use only of past prices of IBM stock. George
A) has adaptive expectations. B) has rational expectations. C) is likely to rapidly adjust his forecast to news affecting the future profitability of IBM. D) is likely to make forecasts that reflect closely IBM stock's fundamental value.
Internal rate of return analysis suggest that a project should be undertaken if
A. NPV >0. B. MB > 0. C. IRR > discount rate. D. discount rate >inflation rate.
When the price of wheat increases, the producers of bread will supply more bread at each price
Indicate whether the statement is true or false