When the inflation rate is positive, the

A) real interest rate is greater than the nominal interest rate.
B) real interest rate is less than the nominal interest rate.
C) nominal interest rate is zero.
D) real interest rate equals the nominal interest rate.

B

Economics

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An increase in the price of labor (a variable resource) shifts

A) all cost curves upward. B) the variable cost curves upward but leaves the fixed cost curves unchanged. C) the fixed cost curves upward but leaves the variable cost curves unchanged. D) the marginal cost curve rightward. E) none of the cost curves.

Economics

Suppose two firms are trying to decide how much to budget for research and development. Once a new discovery is made, each firm benefits regardless of which firm developed the innovation. In this R&D game of chicken, the Nash equilibrium will be that

A) either both firms conduct the R&D or neither firm conducts the R&D. B) only one firm conducts the R&D but which firm conducts the R&D cannot be determined. C) both firms conduct the R&D. D) neither firm conducts the R&D.

Economics