The expected real interest rate approximately equals
A) the nominal interest rate minus the tax rate.
B) the nominal interest rate minus the expected rate of inflation.
C) the nominal interest rate plus the expected rate of inflation.
D) the yield to maturity on a coupon bond held to maturity.
B
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Katy Perry's latest album is protected from other artists using her lyrics because of:
A. Specialization B. Opportunity costs C. Property rights D. Incentives
Once a bargain has been reached and involved parties have agreed to an arrangement, there is no need for either party to monitor and enforce the agreement
Indicate whether the statement is true or false
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Suppose Country B decides to specialize in tomatoes, and Country A specializes in bananas. What terms of trade would both countries agree to? One tomato for:
A. four bananas B. six bananas C. one banana D. two bananas
Related to the Economics in Practice on p. 431: The National Income and Product Accounts (NIPAs) allow policymakers and economists to analyze the impact of
A. monetary policy. B. spending and tax plans. C. price shocks. D. all of the above