The nominal interest rate is:
A. the everyday notion of the interest rate adjusted for inflation.
B. the reported interest rate, adjusted for the effects of inflation.
C. the amount of interest the bank charges you for saving or pays you for borrowing.
D. the amount of interest the bank pays you for saving or charges you for borrowing.
D. the amount of interest the bank pays you for saving or charges you for borrowing.
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Refer to the table above. If investment expenditure falls by $10,000 in the next year, ________, all other variables remaining unchanged
A) gross domestic product will fall to $467,000 B) gross domestic product will fall by $10,000 C) gross domestic product will increase by $10,000 D) gross domestic product will increase to $500,000
The marginal rate of transformation from good X to good Y:
A. is the sum of a firm's marginal products. B. is the ratio of a firm's marginal products. C. is the product of a firm's marginal products. D. is the difference between a firm's marginal products.
Consumer surplus increases when the market price of a commodity declines
Indicate whether the statement is true or false
Government-imposed quantity restrictions
A) generate a higher price for the good than would prevail under freely competitive markets. B) generate a lower price for the good than would prevail under freely competitive markets. C) does not affect the price of the good because quantity restrictions always ban sale of the good completely. D) can cause prices to either be higher or lower, but always cause excess quantities supplied to develop.