The opportunity cost of holding money is
A) zero.
B) the inflation rate.
C) the real interest rate.
D) the nominal interest rate.
D
You might also like to view...
Suppose the economy is initially at equilibrium, in which total planned real expenditures equals real GDP. Which of the following will occur if there is an increase in autonomous investment?
A) Inventories will decrease immediately and production of goods and services will increase until real GDP catches up with total planned real expenditures. B) Inventories will increase immediately and production of goods and services will decrease until real GDP catches up with total planned real expenditures. C) Inventories will not change and production of goods and services will not change either. D) Both inventories and production of goods and services will increase.
As the unemployment rate increases,
A) potential GDP decreases. B) real GDP decreases. C) both real GDP and potential GDP decrease. D) potential GDP increases. E) full employment GDP decreases.
Government regulation of monopolies is designed to
a. prevent price discrimination b. eliminate rent-seeking activities c. reduce barriers to entry into monopolized markets d. keep prices and profits lower than they would otherwise be e. ensure that monopolies are minimizing costs
A. lowering average total cost. B. increasing marginal utility. C. enhancing monopoly power. D. giving society a more-preferred mix of goods and services
A. lowering average total cost. B. increasing marginal utility. C. enhancing monopoly power. D. giving society a more-preferred mix of goods and services.