Choose the pair of words that best completes this sentence: The nominal interest rate is the sum of the ex ante real interest rate and the _________ inflation rate, and real money balances are a function of the ___________ interest rate.
A. expected; nominal
B. actual; nominal
C. actual; real
D. expected; real
Ans: A. expected; nominal
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List the four ground rules for a well-functioning market
What will be an ideal response?
In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF0. What happens if the interest rate rises?
A) There is a movement to a point such as b on supply of loanable funds curve SLF0. B) The supply of loanable funds curve shifts rightward to a curve such as SLF2. C) The supply of loanable funds curve shifts leftward to a curve such as SLF1. D) none of the above
The above figure shows the apartment rental market in Bigtown. At what rent will there be neither a shortage nor a surplus of apartments?
A) $1250 per month B) $1000 per month C) $750 per month D) $500 per month
It is easy to discern the difference between vigorous competition and the exercise of monopoly power
a. True b. False Indicate whether the statement is true or false