Which of the following is correct?
A) real interest rate = nominal interest rate - anticipated inflation rate
B) real interest rate = nominal interest rate + anticipated inflation rate
C) real interest rate = nominal interest rate anticipated inflation rate
D) real interest rate = nominal interest rate / anticipated inflation rate
Answer: C
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All else equal, technological change will be more rapid if
a. the government enhances patent protection b. interest rates are lower c. the government increases research funding d. all of the above e. interest rates are higher
Which of the following statements is true?
a. Free trade benefits a country when it exports but harms it when it imports. b. "Voluntary" limits on Canadian exports of hogs are better for the United States than U.S. tariffs placed on Canadian hog exports. c. Tariffs and quotas differ in that tariffs work like a tax and therefore impose deadweight losses, whereas quotas do not impose deadweight losses. d. Free trade benefits a country both when it exports and when it imports.
There are two goods in the economy, apples and bread. The relative price of apples has increased. This could be due to
A) an increase in the absolute price of apples, ceteris paribus. B) a decrease in the absolute price of bread, ceteris paribus. C) a decrease in the absolute price of apples, ceteris paribus. D) an increase in the absolute price of bread, ceteris paribus. E) a and b
Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below.
If the park is currently 2 acres, and land costs $20 per acre, the town should:
A. purchase two additional acres. B. purchase 4 additional acres. C. reduce the size of the park. D. not change the size of the park.