The equilibrium real interest rate in Belgium will be
A) generally above the world real interest rate.
B) generally below the world real interest rate.
C) equal to the world real interest rate.
D) determined by the equilibrium between desired domestic saving and desired domestic investment.
C
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An investor who bases the decision to buy an asset solely on the expected return of an asset is considered to be:
A) risk loving B) risk averse C) risk neutral D) risk avoiding
Assume that an individual consumes only coffee and bagels and that the last cup of coffee yields 12 utils and the last bagel 6 utils. If the price of a cup of coffee is $1 and the price of the bagel is $.50, we can conclude that the:
a. consumer should consume more coffee and fewer bagels. b. price of coffee is too high relative to bagels. c. consumer should consume less coffee and more bagels. d. consumer is in equilibrium.