The nominal interest rate is the sum of the
a. real interest rate and the historic rate of inflation.
b. real interest rate and the expected rate of inflation.
c. historic rate of inflation and the expected rate of inflation.
d. expected rate of inflation and the rate of price level increase.
b
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In a monopsony labor market, imposition of a minimum wage will
a. reduce employment b. increase unemployment c. cause employers to actually reduce wages d. reduce the number of people looking for work e. none of the above
When negative externalities exist, the private market equilibrium represents a
A) market price which is too low and a market quantity which is too low. B) market price which is too low and a market quantity which is too high. C) market price which is too high and a market quantity which is too low. D) market price which is too high and a market quantity which is too high.