If the nominal interest rate is 6 percent and the anticipated rate of inflation is 6 percent, the real interest rate is
A. 12 percent.
B. 0 percent.
C. 6 percent.
D. 3 percent.
Answer: B
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Paul and Wayne are starting a consulting firm together. Their liability is limited; therefore, their firm is an example of a
A) partnership. B) proprietorship. C) corporation. D) None of the above answers is correct.
A monopolist maximizes profit:
a. by charging the highest possible price on the demand curve. b. by charging a price that equals its marginal cost. c. by producing a level of output where the average-cost curve intersects the demand curve. d. by producing a level of output where marginal revenue equals marginal cost. e. by charging a price equal to its average total cost.
If traveler's checks were $1000 higher and saving deposits were $500 higher, M1 would be
a. $500 higher and M2 would be $1,500 higher. b. $1,000 higher and M2 would be $1,500 higher. c. M2 and M1 would be $1,500 higher. d. $1,000 high and M2 would be $500 higher.