An increase in the interest rate results in
A) a smaller opportunity cost of investment and so planned investment spending decreases.
B) a greater opportunity cost of investment and so planned investment spending increases.
C) a greater opportunity cost of investment and so planned investment spending decreases.
D) a smaller opportunity cost of investment and so planned investment spending increases.
C
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Price elasticity of supply is represented as ____________________.
a. monetary currency b. a percentage c. a fraction d. a ratio
In which of the following situations would a person be best off in real terms?
a. Receiving a 10 percent increase in a nominal wage, with an 8 percent rate of inflation in the economy b. Receiving a 3 percent increase in a nominal wage, with a 0 percent rate of inflation in the economy c. Receiving a 4 percent increase in a nominal wage, with a 5 percent rate of inflation in the economy d. Receiving no increase in a nominal wage, with a 5 percent rate of deflation in the economy e. Receiving a 2 percent decrease in a nominal wage, with a 6 percent rate of deflation in the economy
Only two exchange rate regimes can be considered hard pegs. These are:
A. flexible exchange rates and currency boards. B. dollarization and managed floating. C. currency boards and dollarization. D. the gold standard and inflation targeting.
According to the World Bank, nearly 2 billion people are classified as being in ________ poverty.
A. harsh B. overwhelming C. severe D. extreme