Some countries have negative nominal interest rates. Which of the following statements about this situation is not true?
A) A saver or lender will get back less than the amount she invested.
B) This is mostly a result of deliberate central bank policies.
C) Consumers are expected to save more and consume less.
D) Consumers are expected to borrow more and spend more.
Ans: C) Consumers are expected to save more and consume less.
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Interlace, Inc produces and a unique soda. The company cannot price discriminate. The figure above shows Interlace's demand curve, marginal revenue curve, and marginal cost curve. Interlace's profit maximizing price is ________ per bottle
A) 70 cents B) 50 cents C) 40 cents D) 1 dollar
The distribution of money income can be represented graphically using
A) supply and demand diagrams. B) a Lorenz curve. C) a Keynesian curve. D) a Distribution curve.
To allow a public utility (which is a natural monopoly) to earn only a normal profit, the government should
a. do all of the following b. set price equal to average cost c. equate marginal cost and average cost d. set marginal cost equal to marginal revenue e. set price equal to marginal cost
To minimize costs, a firm should use more labor and less capital if the product derived from the last dollar spent on labor is ________ the product derived from the last dollar spent on capital.
A. greater than B. less than C. equal to D. either greater than or less than