The real interest rate is the rate of inflation minus the nominal interest rate.
Answer the following statement true (T) or false (F)
False
The real interest rate is the nominal interest rate minus the anticipated rate of inflation.
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What does it mean to say that we are running out of "cheap oil"? What does this imply for the price of oil in the future?
What will be an ideal response?
For which of the following goods is the income elasticity of demand likely to be largest?
a. paperback mystery stories b. best-selling hardcover novels c. used textbooks d. children's books e. leather-bound editions of Shakespeare
Which of the following is true?
A) Most stockholders own stock because they want to run the business. B) The shareholders of a large well-established firm are guaranteed to earn a real rate of return of about seven percent in the future. C) Ownership of a corporate bond provides the bondholder with an ownership right to a fraction of the firm's future profits. D) Stock ownership makes it possible for investors to own a fractional share of a firm's future profits even if they do not participate in the operation of the firm.
A dominant strategy is a
A) last-mover strategy. B) negative-sum strategy. C) player's best strategy when she can make the first move. D) player's best strategy regardless whatever strategies are adopted by the rivals.