In 2018, expected inflation exceeded inflation. In 2019, inflation exceeded expected inflation. Therefore the real interest rate was ________ than the expected real interest rate in 2018 and the real interest rate was ________ than the expected real interest rate in 2019.
A. less; greater
B. greater; greater
C. greater; less
D. less; less
Answer: C
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Which would contribute most to a firm experiencing "economies of scale"?
A. Rising long-run average costs B. The law of diminishing marginal returns C. Specialization of production within a firm D. Deterioration of information and control within a firm
Refer to the graph below showing the revenue curves for a monopolist. At what output level is demand inelastic?
A. Q1
B. Q2
C. Q3
D. Q4
Explain why a centrally-planned economy might not grow as rapidly as a market economy
What will be an ideal response?
When the economy experiences inflation, people demand a:
A. lower quantity of money, shifting the money demand curve leftward. B. higher quantity of money, shifting the money demand curve leftward. C. lower quantity of money, shifting the money demand curve rightward. D. higher quantity of money, shifting the money demand curve rightward.