If the real rate of return is 3 percent, and the inflation rate is 4 percent, then the nominal interest rate must be:
A. ?1 percent.
B. 1 percent.
C. 7 percent.
D. ?7 percent.
C. 7 percent.
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Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. What is the maximum amount of pizza Dave can buy each week?
A) 40 B) 20 C) 200 D) 60
If households and firms decide to hold less of their money in checking account deposits and more in currency, then initially, the money supply
A) will decrease. B) will not change. C) will increase. D) may increase or decrease.
Which of the following will not happen as a consequence of a monopolistically competitive firm suffering economic losses in the short run?
A) The firm will exit the industry if it continues to suffer economic losses. B) In the long run the firm will be able to charge a price that is greater than its average total cost. C) The firm's demand curve will shift to the right if it stays in business in the long run. D) The firm will break even if its stays in business in the long run.
Altering the marginal cost of preventive screening by reducing the out-of-pocket cost to zero:
a. will result in everyone with this coverage taking advantage of the free care and receiving the screenings. b. has little effect on the consumption of medical services. c. is a wise use of resources and results in more efficient screening outcomes. d. results in over-investment on screening technology. Using the funds elsewhere could have improved overall welfare.