A financial institution that wants a 5 percent real return on its loans and contemplates a 4 percent annual inflation rate should loan at a nominal interest rate of approximately

Unemployment caused by the fluctuation of the business cycle is called ________ unemployment

A) structural B) recession-related C) frictional D) cyclical

Christopher just won tickets to see an NFL football game. His coworker offers to pay him $300 for them, but Christopher decides to use them, even though he would never pay $300 for them himself. Christopher's willingness to consume $300 worth of tickets that he doesn't value at $300 is attributed to:

A. the high transactions costs involved in selling the tickets. B. the implicit cost of ownership. C. his refusal to ignore the sunk cost of the tickets. D. None of these is correct.