The late 1990s, Japan's economy was still in a prolonged slump. Nominal interest rates were approximately zero, which many economists believed limited the scope for monetary policy. Professor Paul Krugman of Princeton University disagreed. He argued that Japan's central bank should increase the money supply rapidly with the intention of causing inflation. Moreover, it should credibly promise to continue this inflation policy into the future. The result, he predicted, would be increased investment and higher GDP growth. Krugman's recommendation was based on the distinction between real and nominal interest rates. A permanent monetary expansion would

There are three factors that can affect the shape of the treasury yield curve (r* t , ip t , and mrp t ) and five factors that can affect the shape of the corporate yield curve (r* t , ip t , mrp t , drp t , and lp t ). the yield curve reflects the aggregation of the impacts from these factors. suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future. consider all factors that affect the yield curve. then identify which of the following shapes that the us treasury yield curve can take. check all that apply.a. downward-sloping yield curveb. upward-sloping yield curvec. inverted yield curve

Which of the following is usually not one of the top considerations in choosing a country for a facility location? a. availability of labor and labor productivityb. attitude of governmental unitsc. location of marketsd. zoning regulationse. exchange rates

Which of the statements is true about the values recorded in the balance sheet of a firm?