The real interest rate is the
A) nominal interest rate plus the anticipated interest rate.
B) nominal interest rate minus the anticipated interest rate.
C) nominal interest rate plus the anticipated inflation rate.
D) nominal interest rate minus the anticipated inflation rate.
Answer: D
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The question "How are goods and services produced?" most closely addresses which of the following issues?
A) Should Ford build SUVs or luxury cars? B) Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs? C) Should contractors build residential housing or shopping malls? D) Is income distributed fairly in the United States? E) Why are Christmas trees popular only in December?
The cross-price elasticity of demand is measured by the
a. change in quantity demanded of one good divided by the change in price of another good b. percentage change in quantity demanded of one good divided by the percentage change in its price c. percentage change in demand for one good divided by the percentage change in income d. percentage change in quantity supplied of one good divided by the percentage change in the price of another good e. percentage change in quantity demanded of one good divided by the percentage change in price of another good
When entry of new firms decreases input prices in an industry, it is a(n)
a. increasing cost industry. b. decreasing cost industry. c. constant cost industry. d. input elastic industry.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and net nonreserve international borrowing/investing in the context of the
Three-Sector-Model? a. The quantity of real loanable funds per time period falls and net nonreserve international borrowing/investing becomes more negative (or less positive). b. The quantity of real loanable funds per time period rises and net nonreserve international borrowing/investing becomes more negative (or less positive). c. The quantity of real loanable funds per time period falls and net nonreserve international borrowing/investing becomes more positive (or less negative). d. The quantity of real loanable funds per time period and net nonreserve international borrowing/investing remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.