# Sp-15, set 6, Micro, 2D - Sp-15, Set 6, Micro, Chapters 16...

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Sp-15, Set 6, Micro, Chapters 16 and 17Multiple ChoicesIdentify the choice that best completes the statement or answers the question.____1.The nominal interest rate is determineda.by the Federal Reserve system.b.in the loanable funds market.c.by the U.S. Treasury.d.by the average rate of change in the price of capital goods.
____2.As the interest rate falls,
____3.A person who greatly prefers present to future consumption has a(n) __________ rate of time preference.
____4.If suddenly a 4 percent inflation rate (instead of a zero percent inflation rate) is expected by both suppliersand demanders in the loanable funds market, then
____5.What is the approximate present value of \$100 four years from now if the interest rate is 7 percent?a.\$76b.\$93c.\$12d.\$176e.\$112
____6.If a firm is incurring a loss, the loss is a signal that
____7.A person buys X in one market and combines it with Y purchased in another market. The combination of Xand Y gives Z, which the person sells in a third market for a higher price than the sum of the prices of X andY. Which theory of profit is most consistent with this example?
b.Uncertainty is the source of profit.c.Profit is the return to the entrepreneur as innovator.d.none of the above____

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