If the government of a developing country is having difficulty selling bonds to build an irrigation system, it could go to the

The hypothesis that people are nearly, but not fully rational, cannot possibly fully examine every available choice, and utilize simple rules of thumb in making decisions is known as the

A) irrationality hypothesis. B) ceteris paribus hypothesis. C) individual aggregation hypothesis. D) bounded rationality hypothesis.

Suppose that the nominal interest rate increases while the expected inflation rate rises. Given this information, we know with certainty that the real interest rate

A) will not change. B) will fall. C) will fall, but only if the increase in the nominal rate is smaller than the increase in expected inflation. D) will fall, but only if the increase in the nominal rate is greater than the increase in expected inflation. E) none of the above