The pure rate of interest is approximated by the:
A. rate that savings and loan associations charge on mortgage loans.
B. rate charged consumers by credit card companies.
C. rate paid on long-term government bonds.
D. announced rate at which commercial banks make business loans.
Answer: C
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To maximize overall profit in peak-load pricing, managers must determine ________ capacity that maximizes ________ season profit.
A) long-run; peak- B) short-run; peak- C) long-run; off-peak D) short-run; off-peak
Assume that you allocate your income to calzones and juice and that you have not yet spent your entire budget. If the marginal utility of a fourth calzone is 100 and the marginal utility of a third glass of juice is 50, you would
a. eat a fourth calzone because it has a higher marginal utility b. drink a third glass of juice because you've had less juice c. consider the total utility received so far from calzones and juice before deciding what to consume next d. consider the relative prices of calzones and juice before deciding what to consume next e. consider whether or not marginal utility is diminishing before deciding what to consume next
How can an event such as the terrorist attacks of September 2001 affect consumer and business confidence and the economy?
What will be an ideal response?
The most common type of macroeconomic imbalance is overly expansionary fiscal policies that create large government budget deficits, often financed by a high growth rate of the money supply
Indicate whether the statement is true or false