The intersection of supply and demand in the capital market determines the market equilibrium price and quantity in the:
A. rental market.
B. purchase market.
C. both the rental and purchase markets.
D. Any of these statements could be true.
A. rental market.
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Depository institutions
A) make profit from the spread between the interest rate they pay on deposits and the interest rate they receive on loans. B) make a profit according to how much the Federal Reserve pays them. C) make their profit by charging the government for their services. D) make zero profit but receive compensation by the government because their services are so valuable.
Workers at a local construction company are paid $32.50 per hour, and they have incorporated a 4 percent annual raise in their contracts to account for expected inflation
Explain how unexpected inflation of 2 percent will affect the real wages earned by these workers and the unemployment rate of these workers.
Inferior goods have an income elasticity of demand that is:
a. positive. b. negative. c. 0. d. greater than 1 in absolute value. e. equal to 1 in absolute value.
What is the name of the monopolist having a declining long-run average cost throughout the market?
a. Monopolistic competition. b. Monopoly by legal barrier. c. Natural monopoly. d. Contrived monopoly.