Because expected inflation is typically positive, we know that
A) the nominal interest rate is generally less than the real interest rate.
B) the real interest rate is generally less than the nominal interest rate.
C) the nominal and real interest rates are generally equal.
D) the real interest rate is approximately equal to zero.
B
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Refer to Figure 4-6. At the price P2, consumers are willing to buy the Q2 pounds of granola. Is this an economically efficient quantity?
A) Yes, otherwise consumers would not buy Q2 units. B) Yes, because the price P2 shows what consumers are willing to pay for the product. C) No, the marginal benefit of the last unit (Q2 ) exceeds the marginal cost of that last unit. D) No, the marginal cost of the last unit (Q2 ) exceeds the marginal benefit of the last unit.
Which of the following would not be classified as an oligopolistic industry?
A) Defense contractors. B) The recorded music industry. C) The tobacco industry. D) The women's clothing industry.
Contractionary monetary policy by the Fed could include
A) lowering the discount rate. B) decreasing government transfer payments. C) decreasing reserve requirements. D) selling government securities in the open market.
In the ultimatum game, when the allocator and the recipient care about fairness, how is the distribution of $20.00 affected?
a. Allocators receive everything, and recipients receive nothing. b. Recipients usually reject offers of less than a 10 percent share. c. Allocators usually offer recipients a very small share. d. Allocators and recipients always end up sharing the $20.00 equally.