Capital markets
A) create the price of capital.
B) determine the value of capital.
C) direct capital resources to their highest valued use.
D) all of these choices.
D
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The supply of a renewable resource is perfectly elastic
Indicate whether the statement is true or false
A key component of the asset approach to exchange rates is being able to gauge accurately:
a. the price level. b. the rate of inflation. c. expected future exchange rates. d. the GOP gap.
One can tell that Figure 8.4 shows short run costs because:
A. the slope of total costs and variable costs are the same. B. costs are rising. C. total costs are positive when output is zero implying fixed costs. D. All of these.
Suppose the rate of inflation unexpectedly decreases from 7% to 4%. Which one of the following would most likely benefit from this unexpected reduction in the rate of inflation?
A) creditors. B) a borrower whose loan has a fixed nominal interest rate. C) debtors. D) workers who are covered by a COLA agreement.