The real interest rate is equal to the
A) nominal interest rate plus the inflation rate.
B) nominal interest rate minus the inflation rate.
C) nominal interest rate times the inflation rate.
D) nominal interest rate divided by the inflation rate.
E) inflation rate minus the nominal interest rate.
B
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Everything else held constant, if a central bank makes a sterilized sale of foreign assets, then the domestic currency will
A) appreciate. B) depreciate. C) either appreciate, depreciate, or remain constant. D) not be affected.
If M increases and V decreases: a. nominal GDP increases
b. nominal GDP decreases. c. nominal GDP stays the same. d. there is an indeterminate effect on nominal GDP.
Discuss and contrast the advantages and disadvantages of public highways versus toll roads.
What will be an ideal response?
A publicly traded firm has 4 million shares of stock outstanding, with a current share price of $50. The value of its plant and equipment is $250 million. Its profit annually is $50 million. The average cost of capital is approximately
a) 5% b) 10% c) 15% d) 20% e) 25%