If the nominal interest rate is 5 percent and there is no inflation, then the real interest rate:
a. exceeds 5 percent.
b. is less than 5 percent.
c. is 5 percent.
d. is zero.
c
Economics
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Which of the following is true of the market equilibrium in the presence of negative externalities? a. It is the intersection of the social cost curve and the demand curve
b. It is the intersection of the private cost curve and the demand curve. c. Net social welfare is maximized at the equilibrium. d. Market output is less than the socially optimal output at the equilibrium.
Economics