An increase in the real interest rate will
a. increase the inflationary premium.
b. decrease the inflationary premium.
c. increase the price of current consumption relative to future consumption.
d. decrease the price of current consumption relative to future consumption.
C
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When you join the local organic food market and then buy produce each month, money is used as
A) only a store of value. B) only a unit of account. C) a medium of exchange and a store of value. D) a medium of exchange and a unit of account. E) a store of value and a unit of account.
Sam, who owns a carpentry shop, discovered that with 4 laborers he could produce 18 cabinets per day. With 5 laborers he produced 25 cabinets and with 6 laborers he produced 36 cabinets. What was the MPP of the 5th laborer?
A) 8 cabinets B) 7 cabinets C) 6 cabinets D) 4 cabinets