Which of the following statements about the real interest rate is not correct?
a. The real interest rate includes the expected inflation rate.
b. The real interest rate represents the society's time value of money.
c. The real interest rate is determined by the forces of supply and demand.
d. The real interest rate remains the same as a nation's average expected inflation rate rises.
e. All the above are false.
.A
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A firm, such as a public utility, which is the sole producer in a market in which the government determines prices and standards of service, is known as a(n):
a. local monopoly. b. natural monopoly. c. regulated monopoly. d. oligopoly. e. monopolistically competitive firm.
When the Fed wants to increase the US money supply, it will order the US Mint to print more currency
a. true b. false
Business cycles ________, and recessions ________
A) are of equal length; are of equal severity B) are of equal length; differ in severity C) vary in length; are of equal severity D) vary in length; differ in severity
If automobile commuters are asked in a survey whether their city needs additional freeways, the answers will reveal
A) almost nothing about the demand for freeways. B) only one portion of the demand for freeways. C) the demand for freeways but from a biased grou