The expected real interest rate is equal to
A) the nominal interest rate minus the expected rate of inflation.
B) the nominal interest rate plus the expected rate of inflation.
C) the nominal interest rate minus the actual rate of inflation.
D) the nominal interest rate plus the actual rate of inflation.
A
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The concept of economic rent applies to
A. all wage and salary earners. B. no wage or salary earners. C. only owners of real estate. D. people with rare valuable skills.
Between the years 2000 and 2010, the price of cars increased substantially as automobile companies added new and improved features and increased the power of car engines. If cars are included in the fixed basket of goods used to calculate the Consumer Price Index, it will fail to reflect true changes in the cost of living of an average consumer because of the: a. new goods bias. b. substitution
bias. c. quantity bias. d. quality bias.
Which of the following is a final good or service?
a) a haircut purchased by a father for his 12 year-old son b) fertilizer purchased by a farm supplier c) diesel fuel bought for a delivery truck d) Chevrolet windows purchased by a General Motors assembly plant
Which of the following student aid programs is likely to have the highest target efficiency?
A. Direct payment of tuition to the university. B. Low-interest loans. C. Job opportunities for students. D. Direct cash payments to the student.