If the nominal interest rate in an economy is 4% and the real interest rate in the economy is 2%, the rate of inflation in the economy must be:
A) -2%. B) 4%. C) 2%. D) 0.5%.
C
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If a firm supplies 200 units at a price of $50 and 100 units at a price of $40, using the midpoint method, what is the price elasticity of supply?
A) 0.33 B) 1.00 C) 3.00 D) 5.00 E) 8.50
Over the most recent movements from cyclical peak to trough, 1990: Q3 to 1991: Q2, gross private domestic investment ________ approximately ________ percent
A) fell, 40 B) rose, 5 C) fell, 11 D) rose, 22
Decreases in interest rates have made it less costly to finance purchases of new houses. What impact will this have on U.S. aggregate demand?
A) None. A nation's aggregate demand is not affected by changes in interest rates. B) U.S. aggregate demand will remain unchanged. C) U.S. aggregate demand will decrease. D) The U.S. aggregate demand curve will shift to the right.
Some countries intentionally aim for a low standard of living, high rates of unemployment and inflation, or an unsustainable trade imbalance within their economies.
Select whether the statement is true or false. A. True B. False