Suppose that the nominal interest rate increases while the expected inflation rate rises. Given this information, we know with certainty that the real interest rate
A) will not change.
B) will fall.
C) will fall, but only if the increase in the nominal rate is smaller than the increase in expected inflation.
D) will fall, but only if the increase in the nominal rate is greater than the increase in expected inflation.
E) none of the above
C
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When managers in oligopolistic firms make decisions that affect output or price, they must
A) also be sure they erect barriers to entry to prevent new entrants from affecting their plans. B) anticipate the reactions of their rivals and plan accordingly. C) register with the Antitrust Division of the Department of Justice. D) inform the regulators of their industry about their plans.
Which of the following will NOT cause a shift in the demand for portable power banks?
A. a change in income B. a change in the price of portable power banks C. a change in taste D. a change in the price of smartphones
Recently Apple Computer developed Apple's new iTunes Music Store, which offers more than 200,000 songs from five major record labels, for use with Apple's iPod and iMac. More than a million songs were downloaded the first week alone! In economic terms,
CEO Tim Cook helped convert capital and labor inputs into products consumers use. Any activity that results in the conversion of resources into products that can be used in consumption is A) not profitable. B) a start up venture. C) demand. D) production.
The demand curve for labor would shift leftward as the result of a(n)
A. decrease in the productivity of labor. B. increase in the price of labor. C. decrease in the price of capital, provided the output effect exceeds the substitution effect. D. increase in the price of the product labor is producing.