If a lender charged a 4 percent nominal interest rate and the expected inflation rate is 1 percent, what is the difference between the real rate the lender received and the real rate the lender expected when actual inflation ended up being 1 percent?

If the leading canned soup company introduces dozens of new flavors in order to dominate shelf space, the company is most likely trying to create a barrier to entry by

a. increasing the total investment needed to reach the minimum efficient size b. spending more on advertising than potential competitors can afford c. exploiting economies of scale d. crowding out the competition e. establishing an undifferentiated oligopoly

What are the commonly used arguments for the use of tariffs?