Which of the following statements is true?
a. Expected inflation rate = real interest rate - nominal interest rate.
b. Nominal interest rate = real interest rate + expected inflation rate.
c. Real interest rate = nominal interest rate + expected inflation rate.
d. Nominal interest rate = real interest rate - expected inflation rate.
e. Expected inflation rate = nominal interest rate + real interest rate.
b. Nominal interest rate = real interest rate + expected inflation rate. (The Fisher Equation: Nominal and Real Interest Rates Real interest rate is the nominal interest rate minus the actual or expected inflation rate. )
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President Barack Obama pushed forward a national health care plan to increase the availability of medical care for all Americans. How would one determine the opportunity cost of the proposal?
What will be an ideal response?
If, holding the strategies of all other firms constant, no firm can obtain a higher profit by choosing a different strategy, then
A) the firms are using the Cournot model. B) the firms' strategies are a Nash equilibrium. C) the firms must have formed a cartel. D) the firms are using the Bertrand model.
Curve A is always declining because
a. marginal product first decreases, then increases b. of diminishing marginal product. c. we are dividing fixed costs by higher and higher levels of output. d. marginal product first increases, then decreases.
When the price of steel rises, Ford uses more aluminum in the production of its cars. This is an example of
a. substitution in consumption. b. substitution in production. c. a change in the marginal productivity of a resource. d. derived demand.