If the nominal interest rate is 13 percent and the anticipated rate of inflation is 8 percent, the real interest rate is
A. 21 percent.
B. -5 percent.
C. 13 percent.
D. 5 percent.
Answer: D
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The break-even investment line becomes flatter when the depreciation growth rate ________ or the labor force growth rate ________
A) increases; decreases B) increases; increases C) decreases; increases D) decreases; decreases
The federal funds market is
A. where banks borrow from the Fed. B. where thrifts borrow from the Federal Home Loan Bank Board. C. where one depository institution borrows from another. D. the source of loans for agencies of the federal government.
Which type of demand for money causes the demand for money curve to slope downward?
A. speculative demand B. precautionary demand C. transactions demand D. foreign-exchange demand
When social costs of an activity exceed private costs
A. this means that resources are being efficiently used. B. a market failure exists. C. the actual price is above the efficient price. D. there is a tendency for resources to be under-utilized.