Everything else held constant, an increase in expected inflation, lowers the expected return on ________ compared to ________ assets
A) bonds; financial
B) bonds; real
C) real estate; financial
D) real estate; real
B
You might also like to view...
Yield management and price discrimination have enabled firms to increase profits and, at the same time
A) reduce transactions costs. B) capture some consumer surplus. C) reduce the cost of production. D) transfer some producer surplus to consumers.
The Compensating Variation for an increase in the price of a good is
A) the minimum amount of money a consumer would accept to voluntarily accept the price increase. B) the maximum amount of money a consumer would pay to avoid the price increase. C) the change in consumer surplus resulting from a price increase. D) the change in utility resulting from the increase in price.
Suppose the supply of coal is perfectly inelastic, and the price elasticity of demand for coal is -0.4
If the government imposes a binding price ceiling for coal at a price that is 20 percent below the market equilibrium price, what is the impact of this policy on the market quantity? A) Excess demand equals 80 percent of the market equilibrium quantity B) Excess demand equals 8 percent of the market equilibrium quantity C) Excess demand equals 16 percent of the market equilibrium quantity D) The policy does not affect the market quantity
Which of the following would be an external cost in the market for cigarettes?
a. price of a pack of cigarettes b. loss of income for the smoker resulting from extra missed days of work c. higher life insurance premiums paid by the smoker due to smoking d. loss in utility in smoking by the smoker because the smoker must stand outside her office building in the cold winter to smoke e. increased risk of cancer to the nonsmoking passengers in the smoker's car pool