The real interest rate can be thought of as
A) the price of current consumption relative to future consumption.
B) the price of current consumption completely smoothed over a lifetime.
C) the price of future consumption smoothed completely over a lifetime.
D) the price of current consumption divided by the price of current saving.
A
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Since 1950, there has been a substantial increase in wheat production. The increase in production has led to a decrease in the price of wheat because of which of the following factors?
A) The absolute value of the price elasticity of demand for wheat is less than 1 and the income elasticity of demand for wheat is greater than 1. B) The absolute value of the price elasticity of demand for wheat is greater than 1 and wheat is a close substitute for other food products. C) The income elasticity of demand for wheat is high and wheat is an inferior good. D) The absolute value of the price elasticity of demand for wheat is less than 1 and the income elasticity of demand for wheat is low.
A monopolistically competitive firm in short-run equilibrium:
A) will make negative profit (lose money). B) will make zero profit (break-even). C) will make positive profit. D) Any of the above are possible.
Other things equal, a monopolist will hire
A) more workers than a perfectly competitive industry. B) fewer workers than a perfectly competitive industry. C) more workers than a perfectly competitive firm. D) the same number of workers as a perfectly competitive industry would.
Since 1970, the composition of federal expenditures has:
a. been virtually unchanged, but federal spending as a share of GDP has declined substantially. b. been virtually unchanged, but federal spending as a share of GDP has increased sharply. c. shifted away from national defense and toward spending on income security. d. shifted away from income security income transfers and toward spending on national defense.