Higher Prices May Serve the Public Interest When

question 93

Multiple Choice

Higher prices may serve the public interest when

• A)there is a shortage of goods or services available.
• B)there is an equal distribution of traffic on alternate routes.
• C)higher prices never serve the public interest.
• D)lower prices signal scarcity.

Differentiate between real and nominal interest rates.

Comprehend the term structure of interest rates and its components.

Grasp the relationship between bond prices and market interest rates.

Recognize the influence of inflation expectations on the term structure of interest rates.