Both the nominal rate of interest and the real return on investment increase with the inflation rate
Indicate whether the statement is true or false
FALSE
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The minimum price for a good set by the government above the equilibrium price is called a:
a. price ceiling. b. price floor. c. parity price ratio. d. market-generated price. e. deficiency price.
An important determinant of comparative advantage is:
A. equal technology levels across nations. B. well established governmental regulations on trade. C. homogeneity of climate and natural resources between countries. D. endowment of factors of production.
If the rate at which workers flow from employment into unemployment each period is 6% and the flow out of unemployment occurs at a rate of 69%, then the natural rate of unemployment is
a) 4.14% b) 6% c) 8% d) 6.9% e) 11.5%
The amount of revenue the government collects after imposing the tariff is ________.
A. $1,000 B. $40,000 C. $10,000 D. $4,000