Real interest rates
a. cannot be negative.
b. can be negative only if inflation is negative.
c. can be negative only if inflation is zero.
d. can be negative only if inflation is greater than zero.
d
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One of the potential upsides of contractionary fiscal policy is a reduction in
A. tax revenues. B. unemployment. C. output. D. payments on the national debt.
The term Original Sin by two economists Barry Eichengreen and Ricardo Hausmann is used to describe what?
A) low-income economy B) developing countries' inability to borrow in their own currencies C) a sin that is part of the Ten Commandments D) borrows not able to receive loans E) not diversifying economies portfolios
A holdup problem occurs
A) when a financial institution undertakes too little investment in security. B) when one firm must make a specific investment and a second firm takes advantage of it. C) if the firm that moves second in a Stackelberg game chooses the incorrect output level. D) if you are entering into a contract with a government entity.
We see permanent price differentials in land because
a. the demand for land is high b. land has few uses c. location is the inherent quality that often determines its value d. real estate brokers are inefficient e. land is not traded in free markets