The nominal interest rate will be less than the real interest rate when
A) the rate of inflation is positive but decreasing.
B) the rate of inflation is positive and increasing.
C) the rate of inflation is negative.
D) the real interest rate is negative.
Answer: C
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U.S. national debt _______ when the federal government's _______
A. increases; outlays exceed tax revenue B. decreases; outlays exceed tax revenue C. increases; tax revenue rises faster than outlays D. decreases; tax revenue rises faster than outlays
Refer to the table below. What is the profit-maximizing number of resort units for Gorgeous Sands Resort during the off-peak period?
The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off-peak marginal revenue, and its peak and off-peak demand for its resort units.
A) 250
B) 200
C) 350
D) 300
Commercial banks do NOT
A) buy U.S. government Treasury bills. B) accept deposits from their customers. C) make loans to creditworthy individuals and businesses. D) determine what assets are money.
Charging drivers with good records lower premiums than drivers with bad records is an example of an attempt by insurance companies to deal with the problem of
A) moral hazard. B) adverse selection. C) drunk driving. D) failure of policyholders to keep paying their premiums.