When we consider our savings, interest rates ________ and inflation rates ________ the value.
A. have no real effect; decrease
B. increase; increase
C. increase; decrease
D. decrease; increase
Answer: C
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The long-run market supply curve in the presence of internal economies of scale is ________, and in the presence of external economies of scale, it is ________
A) downward sloping; downward sloping B) upward sloping; horizontal C) horizontal; upward sloping D) downward sloping; horizontal E) upward sloping; downward sloping
Certain vendors that market their goods via mail order have been known to send out catalogues to different regions of the country with items priced differently across regions
Assuming prices are matched to regions on a random basis, this practice would be considered an example of group pricing, or third-degree price discrimination. Indicate whether the statement is true or false
In Keynes's view, an excess quantity of money demanded causes people to:
A. sell bonds and the interest rate rises. B. buy bonds and the interest rate falls. C. buy bonds and the interest rate rises. D. increase speculative balances.
Before taking management and trading costs into account, arbitrage activities in the market ensure that the returns of actively managed funds are:
A. Significantly higher than those of index funds with similar risk B. Significantly lower than those of index funds with similar risk C. About the same as those of index funds with similar risk D. More volatile than those of index funds with similar risk