Some countries have negative nominal interest rates. Which of the following statements about this situation is not true?
A) A saver or lender will get back less than the amount she invested.
B) This is mostly a result of deliberate central bank policies.
C) Consumers are expected to save more and consume less.
D) Consumers are expected to borrow more and spend more.
Ans: C) Consumers are expected to save more and consume less.
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What strategic advantage compared to a Cournot Oligopoly results in the Stackelberg outcome?
A) the ability to move first B) the ability to set price C) the ability to set quantity D) the ability to make independent decisions by the Stackelberg leader
The beginning of the formal budget process is signified by:
a. in the form of the Economic Report of the President b. in a report followed shortly by the Economic Report of the President. c. at the beginning of the fiscal year. d. in a report that should be voted up or down within 60 days. e. in a report that requires a two-thirds vote for ratification.