We should expect a country that experiences volatile inflation to also have:
A. stable nominal interest rates.
B. volatile real interest rates.
C. volatile nominal interest rates.
D. volatile real interest rates but stable nominal rates.
Answer: C
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Refer to Figure 1A.1. If the hours worked per week are 20, the income per week is
A) 50. B) 100. C) 150. D) 200.
Why does a prisoner's dilemma lead to a noncooperative equilibrium?
A) because players must choose from a limited number of non-dominant strategies B) because each player is uncertain how other players will play the game C) because each player had agreed before the game started to minimize the harm that he can inflict on the other players D) because each rational player has a dominant strategy to play a certain way regardless of what other players do
Which of the following statements is true?
A) The expected return and standard deviation of return are greater for common stock than for U.S. Treasury bills. B) The expected return on common stocks is greater than the expected return on U.S Treasury bills, but the standard deviation of return for common stocks is less than the standard deviation of return for U.S. Treasury bills C) The expected return on common stocks is less than the expected return on U.S Treasury bills, but the standard deviation of return for common stocks is greater than the standard deviation of return for U.S. Treasury bills. D) The expected return and standard deviation of return are less for common stocks than for U.S. Treasury bills.
How many U.S. dollars does a U.S. importer need to pay for 100,000 yen worth of stereo equipment when the price of 1 yen is $0.008?
a. $125 million b. $1.25 million c. $80,000 d. $1,250 e. $800