Which of the following formulas is used to calculate the inflation rate?

A speculator becomes the fixed-rate payer in an interest rate swap. He expects that

A) long rates rise. B) long rates fall. C) short rates rise. D) short rates fall.

Fishermen on the East Coast are using lobster traps out of which most of the lobsters that enter can escape. Why?

A) It will make over-fishing less likely. B) They can't come up with better traps. C) They are not educated enough to maximize profit. D) They catch more lobsters this way.