Which of the following statements is most correct?
A. We cannot compute either the ex post or ex ante real interest rates accurately.
B. We can accurately compute the ex ante real interest rate but not the ex post real rate.
C. We can always compute the ex post real interest rate but not the ex ante real rate.
D. None of the statements are correct.
Answer: C
Economics
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If Johnny is willing to pay up to $3 for an ice-cream cone but she actually pays $1 for it. The consumer surplus of the ice-cream cone for Johnny
A) is $1. B) is $2. C) is $4. D) cannot be determined without information about the market structure.
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The demand curve faced by a competitive firm is
a. horizontal. b. downward sloping. c. upward sloping. d. nonexistent.
Economics