The user cost of capital is represented by which of the following variables?
A) ?t
B) rt
C) 1/(rt + ?)
D) ?t /( rt + ?)
E) none of the above
E
Economics
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The downward slope of the demand for money curve is created by the:
a. transactions demand for money. b. precautionary demand for money. c. speculative demand for money. d. all of these.
Economics
Initially, the nominal rate of interest is 8 percent and inflation is 4 percent. The nominal interest rate then rises to 12 percent and the inflation rate to 8 percent. It follows that the real rate of interest has
a. fallen. b. remained the same. c. risen to 8 percent. d. risen to 10 percent.
Economics