If the real interest rate is 4 percent and the inflation rate is 3 percent, then the nominal interest rate is
A) -1 percent. B) 1 percent. C) 3.5 percent. D) 7 percent.
D
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Marginal utility measures the
A) total utility from consumption. B) additional utility from an additional unit of consumption. C) average utility from an additional unit of consumption. D) additional cost of an additional unit of consumption.
Refer to Table 20-7. Suppose that the data in the table above reflect price levels in the economy. What is the inflation rate between 2015 and 2016?
A) 2.9% B) 3.5% C) 4.6% D) 5% E) 7.5%
If the foreign use of Australian-mined coal is harming Australia, the optimal policy for the Australian government to use is to
A. tax coal imports. B. subsidize coal exports. C. tax foreign coal producers. D. tax coal exports.
When national income in other nations decreases, aggregate:
A. demand increases. B. supply decreases. C. demand decreases. D. supply increases.