Assume you are lending money to a friend for a year and want to earn real interest of 5 percent on the loan. If you believe the inflation rate the next year will be 3 percent, you should charge your friend a nominal interest rate of
a. 5 percent
b. 8 percent
c. 3 percent
d. 15 percent
e. whatever he will pay
B
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Saving is an example of
A) a stock concept. B) a flow concept. C) a depreciation concept. D) an investment concept.
Explain how the marginal product and average product of labor change as the labor employed increases (a) initially and (b) eventually
What will be an ideal response?
A pharmaceutical company faces a price regulation where it cannot charge any higher than $5,000 for a lifesaving drug. The company knows that the patients put a high value on this product and are willing to pay up to $10,000 for it. The company decides
to sell the drug at $5,000 and receives another $5,000 from administration through their exclusive medical service providers. This is an example of a. Tying b. Bundling c. Exclusion d. Fraud, the company is not allowed to sell for any higher than the regulatory price
In 2014, the percentage of people covered by health insurance for the entire year was
A. 40%. B. 65%. C. 95%. D. 83%.