An increase in the real interest rate will
a. increase the inflationary premium.
b. decrease the inflationary premium.
c. increase the price of current consumption relative to future consumption.
d. decrease the price of current consumption relative to future consumption.
C
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Figure 4.4 illustrates the supply of tacos. An increase in the price of ground beef, which is used to make tacos, would most likely cause a movement from
A) point a to point b. B) point c to point b. C) S2 to S1. D) S0 to S1.
In the United States, major league baseball is exempt from antitrust laws. Before 1975, the baseball team owners agreed to hold an annual draft of amateur baseball players
Once the players were drafted and signed by a team, they were effectively tied to that team for life. This allowed baseball owners to operate like ________ in the market for player services. A) perfect competitors B) monopolistic competitors C) a monopsonistic cartel D) a monopoly
The repurchase agreement market dried up during the Great Recession because:
a. Counterparty risk increased, which caused normal lending channels to fail and lines of business to shrink. b.The collateral backing these agreements fell in value, causing large massive calls for additional collateral. c. Many participants were uncertain about the value of the securities backing these agreements. d. All of the above.
If the principal amount of a bond is $2,000,000, the coupon rate is 6 percent , and the inflation rate is 4 percent, then the annual coupon payment made to the holder of the bond is:
A. $80,000. B. $40,000. C. $120,000. D. $12,000.