The nominal interest rate is:
A. the interest rate paid to borrowers.
B. not adjusted for inflation.
C. the interest rate paid by savers.
D. the price level adjusted interest rate.
Answer: B
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The supply curve of loanable funds slopes up because
A) at higher bond prices more loanable funds will be supplied. B) higher interest rates reduce the inflation rate. C) an increase in the interest rate makes lenders more willing and able to supply more funds. D) a decrease in the interest rate makes lenders more willing and able to supply more funds.
A person who makes decisions that are "merely good enough" is called a(n)
a. optimizer. b. rational person. c. satisficer. d. maxi-minimizer.
In order for large countries to successfully use tariffs to increase well-being,
A) they must have significant market power . B) the deadweight loss created by the tariff must be greater than the government revenue the tariff generates. C) domestic production must increase more significantly than for the small country case. D) domestic consumption and imports must decrease more significantly than in the small country case.
Social choice involves all of the following except
A. consistently efficient decisions through the use of majority rule voting. B. aggregating over individual preferences. C. deciding what society wants. D. understanding the incentives facing politicians and public servants.