Interest is
a. the price paid for early availability of funds.
b. the risk of extending a loan.
c. an unnecessary premium charged for the use of money.
d. the price one must pay when she does not save.
A
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Other things the same, if the Fed increases the quantity of money, the ________ because ________
A) nominal interest rate decreases; the supply of money curve shifts rightward B) nominal interest rate increases; the supply of money curve shifts rightward C) nominal interest rate does not change; only the real interest rate is effected D) nominal interest rate decreases; the supply of money curve shifts leftward E) nominal interest rate increases; the supply of money curve shifts leftward
The rate of inflation in Vroomka, a small island country, was 12.3 percent last year. The value of the GDP deflator of the country last year was _____
a. 100.23 b. 123.00 c. 112.30 d. 87.70
Average Variable Costs are calculated as follows:
a) TC divided by output; b) TVC divided by output; c) TFC divided by output; d) All of the above.
Using fiscal and monetary policies to deal with a demand shock ______.
a. will prevent the occurrence of a supply shock b. will create a negative supply shock c. is more effective than using them to deal with a supply shock d. is less effective than using them to deal with a supply shock