A rational investor will always purchase the bond that pays the highest real interest rate
a. True
b. False
Indicate whether the statement is true or false
False
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A private subsidy has what effect on the amount of a good or service produced? Is a private subsidy an appropriate policy to offset the inefficiency from an external cost or an external benefit?
What will be an ideal response?
If total costs are $18,000 for the year, and the firm has fixed costs of $12,000, what is the level of the firm's variable costs?
What will be an ideal response?
A monopolistically competitive market
a. is imperfectly competitive, and all imperfectly competitive markets are monopolistically competitive. b. is imperfectly competitive, but not all imperfectly competitive markets are monopolistically competitive. c. is imperfectly competitive, whereas an oligopolistic market is not imperfectly competitive. d. is not imperfectly competitive.
In order to understand how the economy works in the short run, we need to
a. study the classical model. b. study a model in which real and nominal variables interact. c. understand that "money is a veil.". d. understand that money is neutral in the short run.