With respect to the interest rate, the inflationary premium
A. is derived from the COLA.
B. is the interest rate expressed in today's dollars.
C. covers anticipated depreciation in purchasing power.
D. is added to the nominal rate of interest to obtain the real rate of interest.
Answer: C
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A cartel is
a. explicit collusion b. a conglomerate merger c. a horizontal merger d. legal in the United States e. implicit collusion
Dunston Military Academy has an annual deficit of $250,000 . Its 1,000 students pay tuition of $10,000 each per year. The economics faculty has recommended solving the problem by recruiting additional athletes with $5,000 scholarships. Each additional athlete will cost the school $2,500 (equipment, etc.). Assuming the academy agrees, how many athletes are needed to eliminate the deficit?
a. Zero, the deficit cannot be eliminated by giving more scholarships. b. 25 c. 50 d. 100