Why are interest rates adjusted for inflation?
Interest is not the "price of money" but is instead the price of early availability. If inflation is anticipated, interest rates on money loans will adjust to ensure that lenders are paid back the actual purchasing power of the funds loaned.
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What is the title of the John Maynard Keynes's book published in 1936 that challenged the classical self-correction economic theory?
a. In the Long-run We Are Dead. b. Classical Economics Revised. c. General Theory of Employment, Interest, and Money. d. A Keynesian Approach to Economic Policy.
Which of the following is not true concerning a currency bailout?
A. The International Monetary Fund will bail out any nation with a devaluing currency. B. The expectation of a bailout can encourage policies that lead to a currency crisis. C. It can help avoid a domino effect of depreciating currencies in other economies. D. It occurs when money is lent to an economy to increase or maintain the value of its currency.
Roughly what portion of U.S. total health spending is paid for by private and public insurance?
A. One-tenth. B. One-fourth. C. Four-fifths. D. One-half.
The figure above shows the marginal revenue and costs of a perfectly competitive firm. When the firm produces 170 units
A) marginal cost is less than marginal revenue. B) marginal revenue equals marginal cost. C) total revenue is less than total cost. D) total revenue equals total cost.