In the Historical Perspective "The Corn Laws Controversy in 19th-Century England," the implication of David Ricardo's theory of differential rent is that
a. high rents were the main cause of high food prices in 19th-century England
b. price is rent determining; rent is not price determining
c. international trade ought to be restricted since it is instrumental in protecting landowners' rents
d. land rents are part of the cost of food production
e. differential land rents do not exist
B
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Indicate whether the statement is true or false
You have won a lottery prize that promises to pay you and your descendants $1,000 a year forever. If the lowest price you are willing to sell this perpetuity for is $20,000, then you must be assuming that the relevant interest rate is
a. 5% b. 10% c. 15% d. 20%
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A. $2,111.5 million B. $10,600 million C. $7,766.6 million D. None of the statements associated with this question are correct.
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline