Which of the following combinations of nominal interest rates and inflation implies a real interest rate of 7 percent?
a. a nominal interest rate of 5 percent and an inflation rate of 4 percent.
b. a nominal interest rate of 4 percent and an inflation rate of 3 percent.
c. a nominal interest rate of 8 percent and an inflation rate of 1 percent.
d. a nominal interest rate of 14 percent and an inflation rate of 2 percent.
c
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A nation's real GDP was $250 billion in 2014 and $265 billion in 2015. Its population was 120 million in 2014 and 125 million in 2015. What is its real GDP per capita in 2015?
A. $2,120 per person B. $212 per person C. $205 per person D. $21,200 per person
Poverty is most likely to decrease when
A. Population increases regardless of what happens to economic growth. B. Economic growth exceeds population growth. C. Population growth exceeds economic growth. D. GDP increases regardless of what happens to population growth.
If the Fed sells $10 million in bonds to a bank, and the required reserve ratio is 20 percent, then the banking system can:
A. decrease the money supply by up to $10 million. B. decrease the money supply by up to $40 million. C. decrease the money supply by up to $50 million. D. increase the money supply by up to $2 million.
Answer the next question(s) based on the following information for Manfred's Shoe Shine Parlor.Units of LaborTotal ProductMarginal ProductTotal Revenue00 11414$422 10 330 90435 539 1176 1267442132Assume Manfred hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. If the wage rate is $11, how many workers will Manfred hire to maximize profits?
A. 1 B. 2 C. 3 D. 5