The higher the expected rate of inflation,
A) the lower is the nominal rate of interest.
B) the higher is the real rate of interest.
C) the higher is the nominal rate of interest.
D) the higher the real and nominal rates of interest.
C
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The Fed has recently paid interest on the required and excess reserves that banks hold
Indicate whether the statement is true or false
A natural monopoly that is regulated to set price equal to marginal cost
A) makes an economic profit. B) makes zero economic profit. C) incurs an economic loss. D) could make an economic loss, an economic profit, or zero economic profit. E) makes zero normal profit.
An increase in the amount of money in circulation would cause a
A) shift of the aggregate demand curve to the right. B) shift of the aggregate demand curve to the left. C) movement up the aggregate demand curve. D) movement down the aggregate demand curve.
Protecting property rights:
A. is essential to economic growth. B. encourages people to invest in capital. C. by governments will likely increase productivity. D. All of these are true.