Which of the following statements is correct about the relationship between inflation and interest rates?
a. There is no relationship between inflation and interest rates.
b. The interest rate is determined by the rate of inflation.
c. In order to fully understand inflation, we need to know how to correct for the effects of interest rates.
d. In order to fully understand interest rates, we need to know how to correct for the effects of inflation.
d
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Which of the following is likely to shift the credit demand curve of a computer manufacturer to the left, assuming all else equal?
A) An increase in the scale of production B) A decrease in the scale of production C) An increase in the real interest rate D) A decrease in the real interest rate
Positive externalities arise when
A) an unprofitable firm is shut down. B) a profitable firm is regulated. C) tax rates are reduced. D) production of a good generates benefits that spill over to third parties.
measures the changes in the average price of consumer goods and services
What will be an ideal response?
A cheese-by-mail club that charges an annual membership fee and an additional fee per cheese shipment utilizes
A) perfect price discrimination B) third-degree price discrimination. C) two-part pricing. D) uniform pricing.