The real risk-free interest rate is determined by:
a. Consumer and business demand.
b. Supply and demand forces in the real loanable funds market.
c. International supply and demand for domestic currency in the foreign exchange market.
d. The size of the government debt.
e. None of the above.
.B
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A craft labor union is made up of
A) groups of workers in an individual trade. B) all the workers in a firm such as General Motors. C) firms that employ similar labor skills. D) an organization that controls the labor market in a particular industry.
According to official statistics in the United States, a person is classified as poor
A. if the person's money income is below the poverty income threshold. B. only if the person's money income is below the poverty income threshold AND the person is not working. C. only if the person's money income is below the poverty income threshold AND the person is homeless. D. if the person's money income and the value of non-cash transfers is below the poverty income threshold.
The principal-agent problem in corporations arises from:
A. the view that workers are agents who are not considered to be the principal asset of the corporations for which they work. B. the fact that the principal objective of most corporations is to make profits and not to contribute to charity. C. a perspective that corporations are agents that represent the principal source of power for government and the national economy. D. a conflict of interest between corporate executives who manage the firm and stockholders who own the firm.
Suppose when the price of a cookie is $2.50, the quantity demanded is 50, and when the price is $1, the quantity demanded is 200. Using the midpoint method, the price elasticity of demand is:
A. -0.72 B. -7.2 C. -1.40 D. -140