When modeling consumer choice, the price ratio of the two products is the:
A. demand for the two products.
B. equilibrium exchange rate.
C. point of tangency for equilibrium.
D. slope of the budget line.
Answer: D
Economics
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The Fisher equation implies ________
A) the nominal interest rate equals the real rate of inflation plus expected inflation B) the real interest rate equals expected inflation C) expected inflation equals current inflation D) the rate of inflation equals the real minus the nominal rates of interest E) none of the above
Economics
The ease with which an asset can be converted into a medium of exchange is known as:
a. volatility. b. liquidity. c. currency. d. speculative exchange.
Economics