The nominal rate of interest is
A. the rate observed in the market that includes an inflation premium.
B. expressed in dollars from the chosen base year.
C. not the rate observed in the market.
D. not adjusted for inflation.
Answer: A
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Which of the following contributes to structural unemployment?
A. People over 65 who don't really want to work. B. A general short-run downturn in the economy. C. People quitting a job just long enough to look for and find another one. D. People losing a job when their skills become obsolete due to technological innovations.
Normally, when a governmental price control affects the price, it can be expected to result in a
A. reduction in the number of units purchased only when the price is forced down. B. reduction in the number of units purchased when the price is forced down and an increase number of units purchased when the price is forced up. C. decrease in the number of units purchased when the price is forced up or down. D. increase in the number of units purchased when the price is forced up or down.
The goals of monetary policy tend to be interrelated. For example, when the Fed pursues the goal of ________, this helps to achieve the goal of ________
A) high employment; price stability B) interest rate stability; financial market stability C) rapid economic growth; low inflation D) interest rate stability; a balanced budget
After the Civil War, per capita income in the South was relatively low compared with other regions of the United States. Which of the following statements best describes how long it took the South to (almost but not quite. catch up with the rest of the country)
a. About one year. b. About five to ten years. c. About twenty five years. d. Several generations.