Chloe has a $15,000 personal loan at a nominal interest rate of 8 percent. If the inflation rate is 3 percent, what is the real interest rate paid on the loan?
A) 2.67 percent B) 3 percent C) 8 percent D) 11 percent E) 5 percent
E
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As a result of moving more decision making from the periphery of the organization toward the center, typically
a. the flow of relevant information to the decision maker should be enhanced b. the flow of relevant information from the decision maker should be enhanced c. the incentive structure for the decision maker should be strengthened d. the incentive structure for the decision maker can be eliminated
Barter is:
A. the direct trade of goods and services for other goods and services. B. the extension of credit to borrowers using funds raised from savers. C. a means of channeling funds from savers to borrowers with productive investment opportunities. D. an equity claim to ownership.
The price of one piece of pizza is $2 and the price of movies is $4. The consumer has $14 of income. The consumer is purchasing 3 pieces of pizza and receiving 20 utils for the last piece. He is also purchasing 2 movies and receiving 40 utils for the last movie. This set of goods
A. is an optimum since the entire income is spent and the marginal utility per dollar spent is the same for the last unit of each good. B. is not an optimum because the marginal utility per dollar spent is greater for pizza than for movies. C. is an optimum since the entire income is spent and total utility is minimized. D. is not an optimum because the consumer has not spent all of his money.
You grow poplar trees. The lumber yard purchases cut trees from you. The trees grow 1 foot per year. Assuming a constant real price per foot for poplar and a real interest rate of 3%, would you sell a 20-foot tree today?
What will be an ideal response?