Which of the following investments is most ideal for a lender?
a. An investment that yields a nominal interest of 6 percent per year in a country that faces an inflation of 2 percent per year
b. An investment that yields a nominal interest of 4 percent per year in a country that faces an inflation of 2 percent per year
c. An investment that yields a nominal interest of 200 percent per year in a country that faces an inflation of 200 percent each year
d. An investment that yields a nominal interest of 50 percent per year in a country that faces an inflation of 70 percent each year
a
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Explain how the market demand curve can be derived. Does the law of demand apply to the market demand curve?
What will be an ideal response?
As illustrated in the textbook, the government can further increase the support price of a commodity by purchasing excess supplies and using a:
A) production quota. B) consumption tax. C) excess profits tax. D) minimum wage.
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. Canada has the ____________ opportunity cost of a pair of shoes than the United States, so: ____________.
A. higher; Canada should specialize in shoe production B. lower; Canada should specialize in apple production C. higher; Canada should specialize in apple production D. lower; Canada should specialize in shoe production
The downward sloping aggregate demand curve can be explained in part through the:
A. wealth effect. B. negative relationship between the price level and net exports. C. negative relationship between the price level and investment spending. D. All of these are true.