Which of the following gives the correct relationship between nominal and real interest rates?
A. Nominal interest rate + real interest rate = expected inflation rate
B. Real interest rate = nominal interest rate + expected inflation rate
C. Nominal interest rate = real interest rate - expected inflation
D. Nominal interest rate = real interest rate + expected inflation rate
Answer: D
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Block pricing
A) is a form of nonlinear price discrimination. B) is pricing where one price is charged for the first block of units purchased, and different prices for subsequent blocks. C) can be either use increasing or decreasing prices for blocks purchased. D) All of the above.
If MPS is equal to 0.15 and MPI is equal to 0.10, an initial change of $19,000 in government expenditure would result in a total change of _____ in income
a. $19,000 b. $16,150 c. $20,000 d. $76,000 e. $126,667
A construction company has built 30 houses so far this year at a total cost to the company of $7.5 million. If the company builds a 31st house, its total cost will increase to $7.76 million. Which of the following statements is correct?
a. For the first 30 houses, the average cost per house was $250,000. b. The marginal cost of the 31st house, if it is built, will be $260,000. c. If the company can experience a marginal benefit of $275,000 by building the 31st house, then the company should build it. d. All of the above are correct.
Brinley holds stock in large high-tech companies in his portfolio. The best way for Brinley to diversify his risk would be to buy:
A. more shares of the stock he already owns. B. shares in other large high-tech companies. C. bonds or stocks of small and medium-sized companies. D. bonds from the large high-tech companies already in his portfolio.