An increase in the actual rate of inflation is most likely to cause a decrease in ________
A) the ex post real interest rate
B) the ex ante real interest rate
C) the nominal interest rate
D) the expected real interest rate
E) none of the above
A
You might also like to view...
Traditionally, economists regarded improvements in technology as
A) unrelated to economic growth in any systematic way. B) the most important factor that helped explain economic growth, and basically the only factor that would cause economic growth. C) an important factor in explaining economic growth that was due to economic forces that also could easily be explained. D) an outside factor that helped explain economic growth.
Why are international investors who have invested in developing nations favoring foreign direct investment and portfolio investment over loans?
A) The process of making loans is usually more difficult for investors to do than foreign direct and portfolio investment. B) The interest rate charged on the loans is usually lower than what can be earned in the U.S. C) It is illegal for banks to make loans to foreign firms. D) Investors have an aversion to owning dead capital and want to make sure that the resources they own do not become dead capital.
When oligopolistic firms in an industry form a cartel, then it is most likely that
A) both industry output and prices will increase. B) both industry output and prices will decrease. C) industry output will increase while prices will decrease. D) industry output will decrease while prices will increase.
In order to promote growth in living standards, policymakers must
a. protect property rights. b. maintain political stability. c. encourage the accumulation of factors of production. d. All of the above