If inflationary expectations are increasing, we would expect that the nominal interest rate would also be increasing, holding all else constant
Indicate whether the statement is true or false
TRUE
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It is highly unlikely that environmental standards are set at an efficient abatement level because of
a. legislative constraints b. the absence of full information about the MSB and MSC of abatement c. differences in MSB and MSC levels at the regional level d. all of the above
Countries with more independent central banks tend to have
A) higher inflation rates. B) lower inflation rates. C) lower rates of unemployment. D) higher rates of GDP growth.
In general, the deadweight loss associated with an import tariff or quota becomes relatively larger when:
A) supply and demand are inelastic. B) supply is elastic and demand is inelastic. C) demand is elastic and supply is inelastic. D) supply and demand are elastic.
The economic benefits of owning a home are greater when home prices are
a. falling and interest rates are high. b. rising and interest rates are low. c. rising and interest rates are high. d. falling and interest rates are low.