The real rate of interest is
A) equal to the nominal rate of interest less the anticipated rate of inflation.
B) equal to the nominal rate of interest plus the anticipated rate of inflation.
C) found by taking the nominal rate of interest and dividing it by the actual rate of inflation.
D) found by taking the nominal rate of interest and adding the actual rate of inflation.
Answer: A
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If there were a decreased fraction of divorced couples and an increase in the proportion of two-income families: a. both would tend to increase measured income inequality
b. both would tend to decrease measured income inequality. c. the decreased fraction of divorced couples would tend to increase measured income inequality, but the increase in the proportion of two-income families would tend to decrease measured income inequality. d. the decreased fraction of divorced couples would tend to decrease measured income inequality, but the increase in the proportion of two-income families would tend to increase measured income inequality.
Which of the following statements is an example of a positive, as opposed to normative, statement?
a. Americans deserve a cleaner environment. b. Reducing emissions reduces days missed from school due to asthma. c. All Americans are entitled to quality health care. d. Economic policies should focus on improving equality.
Which of the following statements is correct?
A. Export sales are not important to U.S. industries because U.S. GDP is so large. B. Many U.S. industries are very dependent on export sales. C. The United States is increasingly dependent on exports, but not on imports. D. The United States would not be affected if it quit importing goods.
A large open economy has desired national saving of Sd = 1200 + 1000rw, and desired national investment of Id = 1000 - 500rw. The foreign economy has desired national saving of 
= 1300 + 1000rw, and desired national investment of 
= 1800 - 500rw. Suppose the foreign country's government increases its spending by 300 and private saving does not change. Then in equilibrium, the foreign country has net exports equal to
A. -350. B. 500. C. -500. D. 350.