The cost of holding money balances increases when
a. the inflation rate decreases.
b. the nominal interest rate increases.
c. the nominal interest rate decreases.
d. nominal GDP is far from full employment.
B
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Airlines that charge higher prices for customers who purchase their tickets at the last minute are:
A. not price discriminating because the cost of the ticket is not the same. B. lowering total economic surplus. C. perfect price discriminators. D. price discriminating by identifying passengers with higher reservation prices.
Uncertainty about interest-rate movements and returns is called
A) market potential. B) interest-rate irregularities. C) interest-rate risk. D) financial creativity.
If the cost of capital increased to 25%, does the firm invest in the printer?
a. Yes because the NPV>0 b. Yes because the NPV=0 c. Need information on the marginal benefits and costs d. No because the NPV<0
Refer to Figure 3.1. Which graph best represents the total cost of an activity?
A. A
B. B
C. C
D. D