Cross elasticity of demand is:
A. Negative for complementary goods
B. Negative for substitute goods
C. Unitary for inferior goods
D. Positive for inferior goods
A. Negative for complementary goods
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The interest rate on a consol equals the
A) price times the coupon payment. B) price divided by the coupon payment. C) coupon payment plus the price. D) coupon payment divided by the price.
Before their merger, XM and Sirius were competing sellers in the U.S. satellite radio market. The U.S. Department of Justice allowed the merger even though it created a single seller in the market
Why might we expect this merger to have limited impact on U.S. consumers? A) There are many close substitutes for satellite radio service (e.g., free AM-FM radio, internet radio) B) The merged firm is likely to act on behalf of its customers and keep its prices and profits low C) U.S. consumers are known to have perfectly inelastic demand for satellite radio (i.e., they are unresponsive to price changes) D) all of the above are correct
If a nation merges its currency with another nation to create a single currency, what must it give up?
a. the ability to purchase currency in foreign exchange markets b. the ability to determine its own nationally-oriented monetary policy c. the ability to fight recessions and control inflations d. the ability to sell currency in foreign exchange markets
The CPI was 220 in 2012 and 231 in 2013 . Phil borrowed money in 2012 and repaid the loan in 2013 . If the nominal interest rate on the loan was 10 percent, then the real interest rate was
a. -5 percent. b. -1 percent. c. 5 percent. d. 3.2 percent.