"An increase in the real interest rate increases the quantity of investment." Is the previous statement correct or incorrect?
What will be an ideal response?
The statement is false. The interest rate is the opportunity cost of the funds used to make an investment. Hence an increase in the interest rate decreases the quantity of investment demanded.
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What are some obstacles to price discrimination that a monopolist who is protected by high barriers to entry might face?
What will be an ideal response?
Suppose that one-year treasury bills yield 8 percent in the United States and 6 percent in Japan. Investors will prefer to purchase the U.S. securities, unless they expect the dollar to __________ against the yen over the next year
A) depreciate by less than 2 percent B) depreciate by more than 2 percent C) appreciate by less than 2 percent D) appreciate by more than 2 percent
cyclical unemployment is best defined as
a. deviation of unemployment from the natural rate b. unemployment dued to individuals searching for new jobs c. chronic unemployment dued to wages not balancing with goods and services d. unemployment associated with inefficiency in capital markets e. unemployment resulting from people who don't wish to work.
A country's standard of living can be calculated by dividing the goods and services its people have by
A. social services. B. population. C. output. D. total production.