If the inflation rate during a particular year is 2 percent, then the real interest rate that a lender will receive from a loan that promises a nominal interest rate of 10 percent is _____
a. 12 percent
b. 8 percent
c. 10 percent
d. 2 percent
b
You might also like to view...
Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Quick Buck cheats by reducing its price to $1 and Pushy Sales matches the price cut, then if consumers are evenly split between the two firms, what will be Quick Buck's economic profit?
A. $3,000 B. $1,000 C. $1,500 D. $2,000
A work stoppage by a union in solidarity with another union's cause is known as a
A) secondary boycott. B) sympathy strike. C) jurisdictional dispute. D) primary boycott.
A copyright gives an inventor the exclusive right to make, sell, or use an invention for a limited time
a. True b. False Indicate whether the statement is true or false
Figure 13-2
?
In Figure 13-2, which of the graphs represents a monopolistic competitor in long-run equilibrium?
A. 1 B. 2 C. 3 D. 4