The real interest rate is:
A. the percentage increase in money that the lender receives on a loan.
B. the percentage increase in purchasing power that the lender receives on a loan.
C. also called the after-tax interest rate.
D. usually higher than the nominal interest rate.
B. the percentage increase in purchasing power that the lender receives on a loan
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Refer to Table 11-7. What is the average variable cost per unit of production when the firm produces 90 lanterns?
A) $490 B) $33.67 C) $7.67 D) $5.44
With a nominal interest rate of 5%, the present discounted value of $100 to be received in two year is
A) $90.00. B) $90.70. C) $95.23. D) $110.00.
Refer to Figure 2-18. Which two arrows in the diagram depict the following transaction: Carter earns a $400 commission for selling men's designer shoes at Brooks Brothers
A) J and M B) J and G C) K and G D) K and M
In the monetary small open-economy model with a fixed exchange rate, a devaluation of the domestic currency in the absence of any other shocks
A) increases the current account surplus and has no effect on the domestic money supply. B) decreases the current account surplus and has no effect on the domestic money supply. C) increases the domestic money supply and has no effect on the current account surplus. D) decreases the domestic money supply and has no effect on the current account surplus.