If you want to earn a real interest rate of 3% on money you lend and you expect that inflation will be 2%, what nominal rate of interest will you charge?
A) 1%
B) 5%
C) 6%
D) 9%
Answer: B
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If 11 workers can produce 53 units of output while 12 workers can produce 56 units of output, what is the marginal product of the 12th worker?
A) 0.16 B) 3 C) 4.67 D) 36
The capture hypothesis suggests that
A) marginal cost regulation is superior to average cost regulation. B) the well-focused interests of consumers will lead to the over-regulation of most industries. C) the firms being regulated will unduly influence the regulators. D) regulation will lead to over-entry and eventual losses for firms in the industry.
Most economists consider the case for jawboning to control inflation is strongest when this policy is used:
a. for a long period of time. b. to combat inflation that is out of control. c. to combat cost-push inflation. d. All of these are true.
Which of the following factors would be considered by a fundamental analyst when predicting a firm's stock price?
a. recent changes in the stock's price b. the knowledge and skills of the firm's current management c. the marketing strategies of the firm's competitors d. a "head and shoulders" shape in a line graph of the firm's stock price e. both b and c