The higher the expected inflation rate in a country, the lower is the nominal interest rate in that country
Indicate whether the statement is true or false
FALSE
Explanation: The Fisher effect says the opposite: the higher the nominal interest rate.
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To maximize net revenue, a price searcher should
A) set total revenue equal to total cost. B) set marginal revenue equal to marginal cost. C) set net revenue equal to zero. D) reduce output if marginal costs are increasing.
A minimum wage law might increase wages without reducing employment if the hiring firm is
a. in perfect competition. b. a monopolist. c. a monopolistic competitor. d. a monopsonist.
U.S. laws requiring that drivers wear seat belts have resulted in
a. a reduction in both driver deaths and pedestrian deaths. b. fewer accidents and fewer deaths per accident. c. fewer driver deaths, fewer accidents and fewer pedestrian deaths. d. little change in the number of driver deaths, but more accidents and more pedestrian deaths.
Which of the following will not lead to economic growth?
A) increased immigration B) restrictions on international trade C) introduction of faster computers D) opening all federal lands to mining