The opportunity cost of money is
A) zero.
B) the inflation rate.
C) the real interest rate.
D) the nominal interest rate.
D
You might also like to view...
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Mathematically, the marginal propensity to consume is:
a. consumption divided by income. b. the change in consumption divided by the change in income. c. income divided by consumption. d. the change in income divided by the change in consumption.
The current account balance of the balance-of-payments account equals
A. the domestic production of goods and services. B. net foreign investment. C. the sum of national savings and domestic capital formation. D. net credits minus debits involving changes in nonofficial foreign financial assets and liabilities.
A bowed-outward production possibilities curve demonstrates the concept of
A. increasing opportunity costs at first but the opportunity costs steadily decrease as you move down along the curve. B. increasing opportunity costs as production shifts from the production of one good to the production of the other good. C. constant opportunity costs as production shifts from the production of one good to the production of the other good. D. decreasing opportunity costs as production shifts from the production of one good to the production of the other good.