Which of the following is an example of capital?

According to the rational choice model developed in the text, which statement below is false?

a. people would be less happy if they exchanged money rather than things at Christmas b. Individual preference patterns do not change because prices change c. consumers behave as if they did cost-benefit analysis on every purchase d. cash grants are always better than in-kind gifts e. none of the above

The "Fisher Effect" occurs when a one-percentage-point rise in expected inflation ________ interest rate by one percentage point

A) raises the expected real B) lowers the expected real C) raises the nominal D) lowers the nominal