This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: During a deflationary period, A) the price level rises. B) the nominal interest rate does not ... (Read 34 times)

EAugust

  • Hero Member
  • *****
  • Posts: 550
on: Jun 29, 2018
During a deflationary period,
 
  A) the price level rises.
  B) the nominal interest rate does not change.
  C) the nominal interest rate is less than the real interest rate.
  D) the real interest rate is less than the nominal interest rate.

Question 2

Explain why choices respond to incentives and think of three incentives to which you have responded today.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

meganlapinski

  • Sr. Member
  • ****
  • Posts: 333
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

People making rational decisions compare the marginal benefits of different actions to their marginal costs. Therefore people's choices change when their incentives, that is the marginal benefit and/or marginal cost, of the choice changes. Just as everyone else, students respond to incentives; a) A student studies because of the incentives offered by grades. b) A student is more likely to attend a class if attendance is factored into the grade. c) A student might attend a meeting of a club if the student's significant other is eager to attend the meeting.


EAugust

  • Member
  • Posts: 550
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

JaynaD87

  • Member
  • Posts: 368
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

The human body produces and destroys 15 million blood cells every second.

Time Line of Human History From Upper Paleolithic Period to the Present Time Line of Human History From Upper Paleolithic Period to the Present
U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994 U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994
Embryonic Period Embryonic Period
Embryonic Period Embryonic Period
The treasurer of a union proposes changing the method of compounding interest on premium ... The treasurer of a union proposes changing the method of compounding interest on premium ...
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Video: Chronology of leptin research (A history of leptin research)

For a complete list of videos, visit our video library