If the expected real interest rate in an economy is 6% and the expected inflation rate is 4%, then the nominal interest rate in the economy is:
A) 6%. B) 14%. C) 4%. D) 10%.
D
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The portfolio theories of money demand state that the demand for real money balances is ________ related to income and ________ related to the nominal interest rate
A) positively; negatively B) positively; positively C) negatively; negatively D) negatively; positively
In peak-load pricing, once capacity is reached, the firm's short-run marginal cost curve becomes ________.
A) downward sloping B) vertical C) negative D) horizontal
The purpose of the Supplemental Security Income program is
A) to provide a minimum income for all households with children. B) to provide a guaranteed minimum income for all Americans. C) to provide a minimum income for the aged, blind, and the disabled. D) to supplement Social Security for the elderly with medical problems.
The market supply curve of a good: a. is the horizontal sum of all the individual supply curves of the good. b. is the vertical sum of all the individual supply curves of the good. c. is always steeper than the individual supply curves of the good
d. is always flatter than the individual supply curves of the good.