If the underground economy is sizable, then GDP will:
a. accurately reflect this subterranean activity.
b. overstate the economy's performance.
c. understate the economy's performance.
d. fluctuate unpredictably.
c
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Games can be judged according to the payoffs
A) as zero-sum, negative-sum, and positive-sum games. B) as collusive or noncollusive games. C) as competitive or noncompetitive games. D) whether all companies participate or not.
The real rate of interest is
A) equal to the nominal rate of interest less the anticipated rate of inflation. B) equal to the nominal rate of interest plus the anticipated rate of inflation. C) found by taking the nominal rate of interest and dividing it by the actual rate of inflation. D) found by taking the nominal rate of interest and adding the actual rate of inflation.