Which of the following equations best represents the long-term real interest rate? The long-term real interest rate =
A) the short-term real interest rate + the term structure effect + the default-risk premium + the expected rate of inflation
B) the short-term nominal interest rate + the term structure effect + the default-risk premium - the expected rate of inflation
C) the long-term nominal interest rate + the term structure effect + the default-risk premium - the expected rate of inflation
D) the short-term nominal interest rate - the term structure effect - the default-risk premium + the expected rate of inflation
B
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Absorption refers to
A) the total amount of imports purchased by a country. B) the net amount of imports purchased by a country. C) total spending by domestic residents, businesses, and governments. D) GDP less desired consumption, desired investment, and government purchases.
The four-firm concentration ratio
A) indicates the total profitability among the top four firms in an industry. B) is an indicator of the degree of monopolistic competition. C) indicates the presence and intensity of an oligopoly market. D) is used by the government as a basis for anti-trust cases.
If there is currently an inflationary gap, an increase in aggregate demand will make the inflationary gap smaller, but a decrease in aggregate demand would make the inflationary gap larger
a. True b. False Indicate whether the statement is true or false
The MRP is the additional ___________ obtained by using one more unit of input.
Fill in the blank(s) with the appropriate word(s).