The real interest rate equals:
a. the nominal interest rate minus the inflation rate.
b. the nominal interest rate plus the inflation rate.
c. the inflation rate minus the nominal interest rate.
d. none of the above.
a
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Which of the following statements is true?
A) Optimizers with the highest opportunity cost of time push up the rental price of apartments with the highest commute time. B) Optimizers with the lowest opportunity cost of time push up the rental price of apartments with the lowest commute time. C) As the rental prices of downtown apartments rise, only workers with the highest opportunity cost of time will be willing to rent them. D) As the rental prices of downtown apartments rise, only workers with the lowest opportunity cost of time will be willing to rent them.
Most consumers in stores use marginal analysis to make their buying decisions
a. True b. False Indicate whether the statement is true or false