If the realized real interest rate in an economy is 6%, the realized inflation rate is 8%, and the expected inflation rate is 8%, then the nominal interest rate in the economy is:
A) 2%. B) 8%. C) 20%. D) 14%.
D
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At the end of World War I (1918), the United States
A. emerged as the world's leading industrial power. B. was the world's largest economy. C. had become the greatest military power. D. All of the choices are true.
Alfonse is a farmer who grows 20,000 bushels of corn each year. Last year, the market price was $3 per bushel. If Alfonse earned $80,000 . the government's target price per bushel must have been
a. $60,000 b. $20,000 c. $4,000 d. $4 e. $1
Targeted asset purchases are:
A. statements today about policy targets in the future. B. asset purchases that increase the reserves held by the federal government. C. expansion of the supply of aggregate reserves beyond the amount needed to maintain the policy rate target. D. asset purchases that shift the composition of the Fed's balance sheet.
A closely held corporation is one that:
A. is free of all federal taxes and regulations. B. uses bonds to raise most of its capital. C. is owned by a small group of investors that has limited or no publicly traded stock. D. has all of its stock trade on the New York Stock Exchange.