If inflation was zero percent, nominal interest rates would be:
A. equal to real interest rate.
B. larger than real interest.
C. smaller than real interest.
D. at the optimal rate.
A. equal to real interest rate.
You might also like to view...
Monopsonistic exploitation is
A) measured by the area above the supply curve but below the wage paid. B) the difference between the marginal revenue product of a worker and the wage received by the worker. C) measured by the height of the supply curve of labor. D) the cost to society from unions.
The quantity theory of money implies that if output and velocity are constant, then a 50 percent increase in the money supply would lead to less than a 50 percent increase in the price level
a. True b. False Indicate whether the statement is true or false
Mondo's Microbrewery is growing rapidly. As a result of achieving larger size, the firm realizes it needs to hire quite a few additional employees and upgrade its brewing and bottling equipment, which increases its average costs. The best explanation for these events is that Mondo's Microbrewery is experiencing ________ returns to scale.
A. constant B. decreasing C. increasing D. first decreasing and then increasing
How do firms and households interact within the context of the circular flow model?
What will be an ideal response?