Borrowers and lenders make transactions based on the
A) expected real interest rate less the expected rate of inflation.
B) real interest rate.
C) expected real interest rate.
D) expected nominal interest rate.
C
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The economy is in equilibrium, TP = TE, and Real GDP is $4,555 billion. The MPC is 0.80, the multiplier is operative, and idle resources exist at each expenditure round. Government purchases rise by $10 billion. As a result, the __________ curve shifts __________, inventory levels unexpectedly __________, business firms ___________ the quantity of goods and services they produce, and Real GDP
__________ by __________. A) TE; downward; fall; increase; rises; $10 billion. B) TP; rightward; fall; decrease; falls; $50 billion C) TE; upward; fall; increase; rises; $50 billion D) TE; downward; rise; increase; rises, $50 billion
Behaving strategically:
A. is an essential part of game theory. B. means recognizing that the actions of others will affect the trade-offs you face, and acting accordingly. C. involves rational decision making. D. All of these statements are true.
In a natural experiment, the same cross-sectional units appear in each time period.
Answer the following statement true (T) or false (F)
Suppliers with a high supply elasticity will bear a ________ tax incidence, while suppliers with a low supply elasticity will bear a ________ tax incidence
A) lower; higher B) higher; lower C) lower or no; higher or full D) A and C