If the nominal interest rate was 12 percent and the inflation rate was 10 percent in 1980, while the nominal interest rate was 7 percent and the inflation rate was 2 percent in 2001, then
a. real rates were higher in 2001.
b. real rates were higher in 1980.
c. credit was more expensive in 1980.
d. credit was cheaper in 2001 because the nominal rate was lower.
a
Economics
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The monopolist faces:
a. a perfectly inelastic demand curve. b. a perfectly elastic demand curve. c. the entire market demand curve. d. all of these.
Economics
A firm is producing 1,000 units of output for which the average variable cost of production equals 50 cents. The firm's total fixed costs equal $700 . The total cost of producing 1,000 units of output equals: a. $700
b. $500. c. $1,000. d. $1,200.
Economics