In the very short run ________
A) the real interest rate will be affected by changes in the nominal rate
B) monetary policy has an immediate effect on inflation
C) the inflation rate is determined by the federal funds rate
D) all of the above
E) none of the above
A
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Samara's income is $30 a month and she spends all of it on music downloads and gasoline. The price of a music download is $1.50 and the price of a gallon of gasoline is $3
At Samara's best affordable point, her marginal rate of substitution is ________ per video tape. A) 0.5 of a download B) 1 download C) 1.5 downloads D) 2 downloads
Torrie is thinking of starting up a small business selling hand-painted wine glasses. She asks her sister, Lisette, if she'd like to join her in setting up a partnership to start the business
What is one disadvantage in joining the partnership that Lisette should consider? A) Lisette should realize that, as an owner of the business, she will be personally responsible for the debts of the business. B) Lisette should realize that her profits in the partnership will always be less than Torrie's profits, since Torrie had the idea to start the business. C) Lisette should realize that Torrie will have complete control over the business because it was her idea. D) Lisette should realize that only Torrie will be allowed to own stock in the business as the founding partner.