If the real rate of interest is the same internationally, then the nominal interest rates differ solely by the expected inflation differential in two countries

The demand curve for bonds would be reduced by

A) a decrease in expected returns on other assets. B) an increase in the information costs of bonds relative to other assets. C) an increase in wealth. D) an increase in the liquidity of bonds relative to other assets.

A meditation class meets on the second floor of a building; the first floor is a nightclub. The loud music from the club disturbs the classes. The club could be soundproofed for a cost of $5,000 or move at a cost of $8,000 . The class can't soundproof enough to overcome the music, but could be moved for $4,000 . According to Coase, a socially optimal solution can be achieved if

a. the local government purchases the building b. the building is torn down c. property rights to be noisy are granted to the nightclub d. property rights to a quiet environment are granted to the meditation class e. both the nightclub and the meditation class relocate