The real interest rate ________
A) is the cost of borrowing adjusted for inflation
B) keeps the market for saving and investment in equilibrium
C) describes the real benefit of saving
D) all of the above
E) none of the above
D
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When negative externalities from production exist, the deadweight loss from a competitive market may be larger than with a monopoly
What will be an ideal response?
You own stock worth an estimated $1 million in the LPL corporation. In addition, you have personal assets worth another $2 million. LPL becomes insolvent, with debts exceeding assets by $15 million. Your personal wealth will decline by
a. $0 b. $1 million c. $1.5 million d. $3 million e. your proportion of the total outstanding stock shares times $15 million
The legal reserve requirement is
a. the minimum amount of reserves the Fed requires a bank to hold b. the interest rate that the Fed charges banks who borrow from it c. the interest rate on loans made by banks to other banks d. the maximum percentage of the price of a stock that can be borrowed from a bank, with the stock offered as collateral e. an appeal by the Fed to banks, asking for voluntary compliance with the Fed's policies
How is net national product (NNP) calculated?
a. Saving is added to the total income of a nation's citizens. b. Saving is added to the total income earned within a nation. c. Depreciation losses are subtracted from the total income of a nation's citizens. d. Depreciation losses are subtracted from the total income earned within a nation.