If the inflation rate is zero, the nominal interest rate is
A) greater than the real interest rate.
B) positive and the real interest rate is negative.
C) equal to the real interest rate.
D) less than the real interest rate.
E) equal to the inflation rate.
C
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Which of the following pricing practices, if proved, would prove a firm engaged in predatory pricing?
A) The firm sets prices below marginal cost per unit. B) The firm sets prices below sunk cost per unit. C) The firm sets prices below total cost per unit. D) The firm sets prices low enough to drive all its competitors out of business. E) None of the above would prove predatory pricing had occurred.
Two goods are ______ when an increase (decrease) in the price of one good causes an increase (decrease) in the demand for the other good.
a. tributes b. detriments c. complements d. substitutes
Refer to the graph shown.
Which of the graphs correctly depict the short-run Phillips curve in the standard model, without trade?
A. A B. B C. C D. D
Which of the following variables would not influence the ex-dividend price of a share of stock at time t?
A) i1et+1 B) i1t C) $Det+1 D) none of the above