An increase in the nominal interest rate, all else held constant, will always cause which of the following?
A) the real interest rate to decrease
B) the expected inflation rate to decrease
C) the demand for money to increase
D) all of the above
E) none of the above
E
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Which of the following is not an indicator that is used by the World Bank in measuring the level of economic development?
a. life expectancy at birth. b. adult literacy rate. c. infant mortality rate. d. all of the above are not used by the World Bank.
Walter is just learning how to ski. He states that every time he goes skiing, he has more fun than the last time. This means his marginal utility of skiing is
a. increasing b. constant c. decreasing d. zero e. negative
A fair bet is one where
A) the player has a 50/50 chance of winning. B) the player's utility function is convex. C) the expected value is zero. D) the expected value is positive.
Discuss the thought process of the owners of a new business with regard to property taxes when deciding where to locate. Will they always locate where property taxes are lowest? Why or why not?
What will be an ideal response?