If the expected inflation rate is negative, the expected real interest rate must be
A) negative.
B) less than the nominal interest rate.
C) equal to the nominal interest rate.
D) greater than the nominal interest rate.
E) none of the above
D
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Use the list of items below to answer the question that follows.1.Money market mutual funds held by individuals 2.Savings deposits, including money market deposit accounts 3.Currency held by banks 4.Currency held by the public 5.Shares of corporate stock 6.Small time deposits 7.Checkable deposits 8.Large time deposits Refer to the above table. Which items are included in neither the M1 money supply nor the M2 money supply?
A. 1, 2, and 6 B. 1, 6, and 8 C. 3, 5, and 8 D. 3, 4, and 7
The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.
Of the labeled points, only ________ are efficient.
A. W, X, Y, Z, V, and T B. T and U C. X, Y, and Z D. W, X, Y, Z, and V
An example of a deficit item on the U.S. balance of payments is
A) the sale of a carburetor made in Michigan to a Honda plant in Ohio. B) a deposit in a bank in New York by a British firm. C) a U.S. resident flies from New York to Rome on British Airways. D) the payment of a dividend from a Canadian firm to an American living in Maine.
In an economy with no inflation, explain why interest rates are positive
What will be an ideal response?