In an inflationary atmosphere that everyone anticipates will persist, lenders will
A) desire a lower nominal interest rate to increase the real rate.
B) desire a higher nominal interest rate to protect against the inflation.
C) tend to see the real rate of interest increase, particularly if the inflation is unforeseen.
D) have the real rate of interest guaranteed by the Federal Reserve Board.
B
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In 1984, the National Minimum Drinking Age Act was passed, raising the legal age to consume alcoholic beverages in the United States from 18 to 21
If the legal drinking age was changed back to 18, how would this affect the market for alcoholic beverages? What would happen to the equilibrium price and quantity of alcoholic beverages?
In the above figure, if five million CDs per month are produced and consumed, that is
A) better than producing and consuming four million CDs because more is always better than less. B) more than the efficient quantity because the marginal social benefit exceeds the marginal social cost. C) more than the efficient quantity because the marginal social cost exceeds the marginal social benefit. D) less than the efficient quantity because the opportunity cost exceeds the marginal social benefit.
An economist from which school of thought would most likely accept the following- "The wide acceptance and practice of activist government fiscal policy."
a. Traditional classical economics b. Neoclassical economics c. Marxist economics d. New monetarist economics e. Keynesian economics
Whether exchanges are strictly domestic or across international borders, every party to any transaction
A. must pay the highest retail value. B. expects to gain. C. tries to break even. D. produces the highest rate of output.