The opportunity cost of holding money is:
A. the nominal interest rate.
B. the rate of inflation.
C. the real interest rate.
D. the nominal interest rate less the cost of converting a bond to cash.
Answer: A
Economics
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Ceteris paribus, if the price of jet fuel rose, what effect would it have on the market for air travel?
a. an increase in equilibrium price and an increase in equilibrium quantity. b. an increase in equilibrium price and a decrease in equilibrium quantity. c. a decrease in equilibrium price and an increase in equilibrium quantity. d. a decrease in equilibrium price and a decrease in equilibrium quantity.
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Monopolies may earn positive economic profits in
a. only the short run. b. the short run or the long run. c. only the long run. d. never.
Economics