Recall from Chapter 5: interest rates in the free market (without artificial lowering by the Fed) are largely determined by
A) Congress.
B) arbitrary bank lending practices.
C) household saving and consumption preferences.
D) tax revenues and lobbying demands.
C
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During an inflationary period, a household with savings of $100,000
A) loses because inflation increases the real tax on the interest paid. B) gains because the inflation gives savers more money and so more purchasing power. C) loses because the inflation increases the after-tax real interest rate. D) gains because inflation increases the value of their savings. E) neither gains nor loses because inflation does not affect savers.
How is the personal distribution of income in India changing?
What will be an ideal response?
National income is defined as gross national product minus
a. depreciation and net taxes. b. national income. c. depreciation. d. personal disposable income.
The average-fixed-cost curve
a. is constant. b. is always decreasing. c. intersects marginal cost at the minimum of average fixed cost. d. intersects marginal cost at the minimum of marginal cost.