Implicit costs are
a. Regarded as costs by accountants, but not economists.
b. Payments that a firm makes to other firms or individuals who supply resources to it.
c. Opportunity costs such as the value of leisure time, or the highest and best use of the business's assets.
d. Costs that vary proportionally with output.
c. Opportunity costs such as the value of leisure time, or the highest and bust use of the business assets .
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If the expected inflation rate was 2.5%, the expected real interest rate was 4.0%, and the real interest rate turned out to be 5.1%, then the actual inflation rate equals
A) 1.4%. B) 1.5%. C) 2.6%. D) 6.5%.
"Crowding out" occurs as an expansionary fiscal policy __________ interest rates, thus __________ investment spending
A) raises; increasing B) raises; decreasing C) lowers; increasing D) lowers; decreasing