The nominal interest rate is equal to the real interest rate minus the anticipated inflation rate
a. True
b. False
Indicate whether the statement is true or false
False
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Spot market is to futures market as
A) rice is to beans. B) today is to tomorrow. C) squares are to circles. D) quarters are to dollars.
A firm engaging in efficient production, using current technology, ________ produce its current level of production with ________ inputs
A) could; fewer B) cannot; fewer C) cannot, more D) cannot; different
In 1991, El Salvador ended a fifteen-year civil war, and the new government in place introduced a number of liberalization policies that included privatization, exchange rate liberalization, tariff reductions, tax exemptions to foreign direct investment, and a more market-oriented economy. These economic reforms are examples of:
A. a fiscal and monetary policy change. B. both a policy change and a regime change. C. a policy change. D. a regime change.
In Keynes's liquidity preference framework
A) the demand for bonds must equal the supply of money. B) the demand for money must equal the supply of bonds. C) an excess demand of bonds implies an excess demand for money. D) an excess supply of bonds implies an excess demand for money.