The nominal interest rate is the sum of the
a. real interest rate and the historic rate of inflation.
b. real interest rate and the expected rate of inflation.
c. historic rate of inflation and the expected rate of inflation.
d. expected rate of inflation and the rate of price level increase.
b
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Assume that Nation X can produce either 40 notepads or 80 pens, and that Nation Y can produce either 10 notepads or 40 pens. This implies that
A. Nation X has a comparative advantage in producing pens. B. Nation Y has a comparative advantage in producing notepads. C. Nation Y is the high-cost producer of pens. D. Nation X has a comparative advantage in producing notepads.
Metering is
a. A type of indirect price discrimination b. A type of direct price discrimination c. An evaluation of a product d. An example of bundling
Which of the following statements is false?
A. Bonuses are paid in addition to base salary. B. Bonuses are frequently linked to performance. C. Free-riding can result from a compensation scheme that gives competitive individual bonuses. D. Free-riding can result from profit sharing. E. Profit sharing redistributes profits back to the workers.
If the firm can vary all factors of production, it is operating
A. at a profit. B. at a zero economic profit. C. in the long run. D. in the short run.