The gains from trade include: i. lower prices from competition. ii. greater output from specialization. iii. greater variety of goods and services available

An unexpected fall in Retail Sales should send bond prices __________ and stock prices __________

A) up; up B) up; down C) down; up D) down; down

Suppose you place $10,000 in a retirement fund that earns a nominal interest rate of 8 percent. If you expect inflation to be 5 percent or lower, then you are expecting to earn a real interest rate of at least:

a. 1.6 percent. b. 3 percent. c. 4 percent. d. 5 percent.