If a country experienced deflation, then
a. the nominal interest rate would be greater than the real interest rate.
b. the real interest rate would be greater than the nominal interest rate.
c. the real interest rate would equal the nominal interest rate.
d. nominal GDP would be smaller than the money supply.
b
You might also like to view...
Protectionism tends to be concentrated in two sectors
A) agriculture and clothing. B) high-tech and national security sensitive industries. C) capital and skill intensive industries. D) industries concentrated in the South and in the Midwest of the country. E) financial services and manufacturing based in the Midwest.
If skilled labor is ___ unskilled labor, then an influx of unskilled immigrants could ____ the demand for skilled labor
a. a substitute for; raise b. a complement to; raise c. a complement to; lower d. a complement to; substitute.
The period of declining growth in real GDP between the peak of the business cycle and the trough is called the
a. contractionary phase. b. boom. c. expansionary phase. d. stationary phase.
The opportunity cost of attending college for one year is best measured by the:
A. benefit received by the student. B. tuition paid for the year. C. total money expenses associated with attending college. D. value of the next-best activity forgone by attending college.