Assume you borrow funds to buy a new car at 10 percent interest and you think that the economy-wide rate of inflation over the life of the loan will be 8 percent
If you are correct in your assumption, your real rate of interest on the car loan will be A) 2 percent.
B) 8 percent.
C) 10 percent.
D) 18 percent.
A
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To maximize profits, the discriminating monopolist sells abroad rather than selling additional units at home because:
a. the home market is just too competitive. b. there would be more incentive for entry from other firms. c. the market price at home would rise and the firm would lose customers. d. it would lower total profits if it lowered its home price in order to sell the additional units.
The Bretton Woods Conference accomplished all of the following except _____.
(A) Establishing the World Bank. (B) Making financial arrangements for the post-World War II world. (C) An agreement to "peg" foreign currencies to the U.S. dollar. (D) Establishing the International Monetary Fund.