The real interest rate is:
A. the everyday notion of the interest rate.
B. adjusted for inflation.
C. the amount of interest the bank pays you for saving or charges you for borrowing.
D. the actual average interest rate in the economy.
B. adjusted for inflation.
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Answer the following statements true (T) or false (F)
1. A good tax must possess the characteristic of equality. 2. If the cost of collecting a tax is low relative to the revenue generated, the tax is said to be economical. 3. Interest on the national debt is an insignificant part of the U.S. federal budget. 4. In the United States, income is taxed only by the federal government. 5. The equality-of-sacrifice doctrine would require larger taxes from higher-income groups.
Which of the following correctly identifies an advantage of using adjusted R2 over R2?
A. Adjusted R2 corrects the bias in R2. B. Adjusted R2 is easier to calculate than R2. C. The penalty of adding new independent variables is better understood through adjusted R2 than R2. D. The adjusted R2 can be calculated for models having logarithmic functions while R2 cannot be calculated for such models.
The laws relating to trespass, the use of airspace and unobstructed view tell us what about property rights definition in the United States?
A. The laws vary depending on information costs and enforcement costs. B. The laws are not absolute in protecting a property owner from intrusion. C. The laws rely on cost-benefit analysis to arrive at efficient outcomes. D. Property laws involve all of these considerations.
The main reason why the aggregate demand curve slopes downward is that higher prices increases the demand for bank deposits, and hence for bank reserves.
Answer the following statement true (T) or false (F)