What are the three components of an interest rate?
Any interest rate can be divided into three components: the time value of money, the anticipated inflation rate, and the risk that a particular loan will not be repaid in full.
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At lower rates of inflation and higher rates of unemployment, the slope of the Phillips curve is a. very steep. b. vertical
c. horizontal. d. less steep.
Explain why marginal revenue is less than price for a monopolist
If it were not for the automatic stabilizers in the U.S. economy,
a. the Federal Reserve would have less reason than it has now to monitor stock prices. b. it would be more desirable than it is now for the Federal Reserve to target an interest rate. c. a strict balanced-budget rule would be more desirable than it is now. d. output and employment would probably be more volatile than they are now.
Which of the following is a characteristic of an oligopolistic market structure?
A) There are few dominant sellers. B) Each firm sells a unique product. C) It is easy for new firms to enter the industry. D) Each firm need not react to the actions of rivals.