It is difficult to determine expected real rates of interest because
A) we never know exactly what inflation rates people anticipate.
B) we cannot measure the nominal interest rate.
C) the inflation rate is a subjective measurement.
D) we cannot measure the inflation rate.
A
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The classical approach to macroeconomics assumes that
A) wages, but not prices, adjust quickly to balance quantities supplied and demanded in markets. B) wages and prices adjust quickly to balance quantities supplied and demanded in markets. C) prices, but not wages, adjust quickly to balance quantities supplied and demanded in markets. D) neither wages nor prices adjust quickly to balance quantities supplied and demanded in markets.
Suppose that minimum efficient scale is approximately 20 percent of maximum potential market demand. In that case,
a. there will be approximately 20 firms in the market b. we should expect to see a few large competitors c. we should expect to see many small competitors d. we should expect a natural monopoly to emerge e. minimum efficient scale is too small for perfect competition to exist