The consumer price index was 200 in 2008 and 190 in 2009 . The nominal interest rate during this period was 4.5 percent. What was the real interest rate during this period?
a. - 0.75 percent
b. - 0.5 percent
c. 9.5 percent
d. 9.75 percent
c
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If the exchange rate of Euros to American dollars was €1.00 = $1.00 yesterday and today is €1.00 = $1.05, then:
(a) The euro appreciated in value relative to the American dollar. (b) The euro depreciated relative in value to the American dollar. (c) All things being equal, imports from the Eurozone to America are more expensive today than they were yesterday. (d) Both (a) & (c) are correct.
An open-market ________ of securities by the Fed results in a decrease in reserves and a decrease in the ________ money.
A. sale; supply of B. purchase; supply of C. sale; demand for D. purchase; demand for
Expected values
A. are calculated as the average value. B. are calculated over all possible outcomes. C. are weighted by the probability of an even occurring. D. all of these answer options are correct.
Suppose that the total fixed cost of producing five sailboats is $4,000 . total variable cost is $4,000 . and the total cost of producing six sailboats is $10,000 . The marginal cost of the sixth sailboat is:
a. $2,000. b. $4,000. c. $8,000. d. $10,000. e. $6,000.