If nominal money supply grows 3% and real money demand grows 8%, the inflation rate is
A) -5%.
B) 8/3%.
C) 5%.
D) 11%.
A
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If the nominal exchange rate were to be expressed as the number of units of domestic currency per unit of foreign currency, and that rate increases, then the domestic currency has:
A. appreciated. B. depreciated. C. become undervalued. D. become overvalued.
Which of the following are two components of the opportunity cost of using capital already owned by the firm?
A) economic profit and normal profit B) implicit rental rate and economic profit C) explicit rental rate and economic costs D) economic depreciation and forgone interest
Jane spends her monthly dining-out budget of $300.00 on either steak or lobster dinners. Using the above figure, what is the opportunity cost of a lobster dinner in terms of steak dinners?
A) 0.5 steak dinners per lobster dinner B) 2.0 steak dinners per lobster dinner C) 5.0 steak dinners per lobster dinner D) 10.0 steak dinners per lobster dinner
Which of the following is the best description of the risks of corporate bonds?
a. the firm declines to pay dividends b. both bankruptcy and higher market interest rates c. only bankruptcy d. lower market interest rates e. both the firm declines to pay dividends and higher market interest rates