Given the zero lower bound on the nominal rate, the lowest real interest rate the central bank can achieve is

Three of the most popular methods of tracking price changes over time are:

A. CPI B. PPI C. MPC D. GDP Deflator E. MPC

Sporto Auto Company manufacturers each of the aluminum engines used in their cars, and there is no outside market for these engines. Suppose the marginal cost of producing the aluminum engines is constant at all quantities

What happens to the optimal transfer price and the quantity of cars produced if the cost of assembly increases? A) Price and quantity increase B) Price and quantity remain the same C) Price and quantity decrease D) Price remains the same and quantity decreases