Suppose there is a reduction in cash flow. This suggests that
A) firms have decreased their expectations of future profits.
B) the real interest rate has increased.
C) the rate of depreciation has increased.
D) current profits have decreased.
E) all of the above
D
Economics
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Refer to Figure 4.8. If half of your friends go to the beach and half go to the park, you will receive a payoff of ________ if you go to the park
A) 0 B) 250 C) 500 D) You cannot determine the payoff from the data in the figure.
Economics
If the expected real interest rate 5% and expected inflation 3%, the nominal interest rate in year t is approximately
A) 2%. B) 3%. C) 5%. D) 8%. E) 11%.
Economics