The break-even inflation rate is the
A. negative of the real interest rate.
B. inflation rate that makes the nominal interest rate equal the real interest rate.
C. excess of the nominal interest rate over the TIPS interest rate.
D. inflation rate that is optimal according to the Friedman rule.
Answer: C
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If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was
A) 1.8 percent. B) 2.5 percent. C) 22.5 percent. D) 18.0 percent.
For a monopolist that does not price discriminate, economic profit is maximized in the short run at a price of $140 . Marginal revenue at that output level is
a. equal to $140 b. greater than $140 c. less than $140 d. less than marginal cost e. greater than average revenue
Which of the following is not correct?
a. Pairwise voting never produces transitive preferences. b. The order of pairwise voting can affect the result. c. Majority voting by itself does not tell us what outcome a society really wants. d. No voting system can satisfy all of the following properties: unanimity, transitivity, independence of irrelevant alternatives, and no dictators.
The process through which an economy's production possibilities curve shifts outward is:
A. full-employment management. B. investment. C. resource renewal. D. out-resourcing.