On its web site, your bank posts the interest rates it is paying on savings accounts. Those posted rates
a. and a price index are both real variables.
b. and a price index are both nominal variables.
c. are real variables, and a price index is a nominal variable.
d. are nominal variables, and a price index is a real variable
b
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Refer to Figure 22-4. Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s. By doing so, these countries were essentially preventing a moment from
A) E to B. B) D to B. C) A to E. D) B to A.
If the writer of an option, holds shares of the stock or an actual quantity of the commodity when she writes the call option on it, her position is said to be:
a. protected. b. exposed. c. covered. d. naked.
One solution to the problems of marginal-cost pricing of a regulated natural monopolist is average cost pricing. In this model, the monopolist is allowed to price its production at average total cost. How does average-cost pricing differ from marginal-cost pricing? Does this solution maximize social well-being?
An increase in spending of $25 billion increases real GDP from $600 billion to $700 billion. The marginal propensity to consume must be:
A. 0.25 and the multiplier is 4 B. 0.50 and the multiplier is 2 C. 0.75 and the multiplier is 4 D. 0.80 and the multiplier is 5