The money market is where money demand and money supply determine the equilibrium ______ interest rate.
a. nominal
b. real
c. gross
d. net
a. nominal
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Little Richie Lemons, a thirteen-year-old former lemonade stand owner, quit the business and now searches for an after-school job. Is he officially unemployed?
A) No, because he was never employed in the first place. B) No, because he is under 16 years old. C) Yes, because he is no longer self-employed. D) Yes, because he is looking for work.
According to the Gordon-Growth model, which of the following can cause the value of a stock to decline?
A) higher expected growth rate of dividends B) increase in the current dividend C) increased systemic risk D) decreased required return on equity
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country B could potentially make would be:
A. (400 iPods, 2,000 tablets). B. (300 iPods, 500 tablets). C. (200 iPods, 1,500 tablets). D. (100 iPods, 2,000 tablets).
A logical starting point from which the study of international trade begins is
a. the recognition that not all markets are competitive. b. the recognition that government intervention in markets sometimes enhances the economic welfare of the society. c. the principle of absolute advantage. d. the principle of comparative advantage.