An improvement in the technology of production for a specific good is expected to cause:
a. Higher prices and decreased quantity sold
b. Higher prices and increased quantity sold
c. Lower prices and decreased quantity sold
d. Lower prices and increased quantity sold
d. Lower prices and increased quantity sold
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A bank seeks a 4% real return on its loans and predicts a 4% annual rate of inflation. It should therefore charge a nominal interest rate of
A) 0%. B) 1%. C) 4%. D) 8%. E) 12%.
Unemployment insurance is:
A. offered by companies as a way to affect the level of frictional unemployment. B. offered by the government as a way to affect the level of seasonal unemployment. C. money that is paid by the government to people who are unemployed. D. All of these are true.
Which of the following statements about the real interest rate is not correct?
a. The real interest rate includes the expected inflation rate. b. The real interest rate represents the society's time value of money. c. The real interest rate is determined by the forces of supply and demand. d. The real interest rate remains the same as a nation's average expected inflation rate rises. e. All the above are false.
The absolute value of the slope of the budget line is:
A. the ratio of the marginal utility of one good to the marginal utility of the other good. B. the ratio of the marginal utility of one good to the price of the other good. C. the ratio of the price of one good to the price of the other good. D. dependent on consumer income.