Which of the following statements is true?
a. Demand-pull inflation is caused by excess total spending.
b. Cost-push inflation is caused by an increase in resource costs.
c. If nominal interest rates remain the same and the inflation rate falls, real interest rates increase.
d. If real interest rates are negative, lenders incur losses.
e. All of these.
e
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The main problem with a system of floating exchange rates is that it
a. leads to excessively high exchange rates that reduce worldwide international trade b. creates uncertainty and reduces the profitability of international trade c. increases the amounts of goods exported and imported so it reduces domestic demand d. generates equilibrium for some exchange rates but not all e. destabilizes democracies and facilitates the growth of alternative political systems
In 2013, new bond issues and other forms of debt totaled ____ in corporate financing
a. $650 billion b. $783 tillion c. $1 trillion d. ?$2 billion