Suppose the consumer price index was 184 in 2009 and 198.17 in 2010 . The nominal interest rate during this period was 5.8 percent. What was the real interest rate during this period?
a. 0.4 percent
b. 1.2 percent
c. –1.9 percent
d. –2.6 percent
c
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In the balance-of-payments accounts, the statistical discrepancy
A) equals the capital account balance minus the current account balance. B) equals the current account balance minus the capital account balance. C) probably reflects hidden capital flows. D) must equal zero.
The legal tender requirement means that
a. people are more likely to accept the dollar as a medium of exchange. b. the government must hold enough gold to redeem all currency. c. people may not make trades with anything else. d. All of the above are correct.
Why does a country's increased specialization due to trade raise issues of fairness?
What will be an ideal response?
If the MRP of land is less than its price, a firm should
A. use more land. B. use less land. C. increase the price it is willing to pay for land. D. try to decrease the productivity of land.