Interest rate ceilings resulted in great profitability for banks in the 1970s
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose coal sells for $50 per ton and can be mined at a constant marginal cost of $20 per ton. Forecasters predict that the price of coal next year will be $55
If your marginal cost next year will still be $20 and the interest rate is 10%, do you sell coal today?
Which of the following is the most accurate statement about real and nominal interest rates?
a. Real interest rates can be either positive or negative, but nominal interest rates must be positive. b. Real interest rates and nominal interest rates must be positive. c. Real interest rates must be positive, but nominal interest rates can be either positive or negative. d. Real interest rates and nominal interest rates can be either positive or negative.
Which of the following statements about the elasticity of demand for a monopolist is TRUE?
A. Since the demand curve of a monopolist is downward sloping, the demand for the good must be inelastic. B. Since a monopolist produces a good with no close substitutes, the price elasticity of demand for the good is zero. C. A monopolist produces a good with demand that is perfectly inelastic because people can not do without the good. D. Since every good has some substitute, even if imperfect, the demand for a good produced by a monopolist will not have zero price elasticity.
Prices
What will be an ideal response?