If borrowers and lenders expect a higher rate of inflation,
a. nominal interest rates will tend to fall.
b. real interest rates will tend to fall.
c. nominal interest rates will tend to rise.
d. real interest rates will tend to rise.
C
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A competitive market is in equilibrium. Then there is a decrease in demand and a decrease in supply. The equilibrium price ________, and the equilibrium quantity ________
A) rises; decreases B) perhaps changes but we can't say if it rises, falls, or stays the same; decreases C) falls; increases D) perhaps changes but we can't say if it rises, falls, or stays the same; increases E) rises; increases
Which of the following statements is true?
A) Firm-specific human capital adds to productivity in only one firm. B) Firm-specific human capital is equally productive in all industries in an economy. C) Firm-specific human capital is equally productive in all firms in a particular industry. D) Industry-specific human capital is equally productive in all industries in an economy.