During a certain year, the nominal interest rate was 7 percent, the real interest rate was 4 percent, and the CPI was 198.3 at the end of the year. The CPI at the beginning of the year was
a. 204.2
b. 192.5
c. 178.6
d. 220.1
b
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An economy of 25 million people has twenty percent of them engaged in research and development, where their productivity is 0.0056. The economy is on a balanced growth path, when suddenly a wave of immigration raises the population to 27 million
Assume that the new workers are immediately "on the job," and that the fraction engaged in R&D remains twenty percent. For the one period that begins with this population increase, the growth rate of output per person is ________. [Refer to the instruction above.] A) 4.3% B) 1.8% C) 3% D) 8%
In recent times, the price of oil has risen dramatically. Economic analysts currently are focusing on questions concerning the likely impacts of this price increase on the U.S. economy. The branch of economics that deals with this situation (i.e., what
will be questions) is called ________ economics. Fill in the blank(s) with correct word
According to the text, today's Lorenz curve is
A) a straight line. B) a vertical line. C) more bowed than in 1929. D) less bowed than in 1929.
The rate at which banks can borrow excess reserves from other banks is equal to
A. the discount rate. B. the interest rate paid on reserves held with the Fed. C. the federal funds rate. D. the Treasury bill rate.