What is the exact nominal interest rate, when the real interest rate is 5% and the expected inflation rate is 15%?
a. 5%
b. 10%
c. 20.00%
d. 20.75%
e. 25.5%
.D
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The change illustrated in the figure above is part of the transmission process of the Fed's monetary policy. As a result of the increase in the supply of loanable funds, aggregate demand ________, real GDP ________, and the price level ________
A) increases; decreases; falls B) decreases; decreases; falls C) increases; increases; rises D) increases; does not change; does not change E) None of the above answers is correct.
The federal budget
A) is required to balance by law. B) can have a surplus but not a deficit. C) can have a deficit but not a surplus. D) can have a deficit or a surplus but cannot be balanced. E) can have a deficit, a surplus, or a balance.
What factors could explain why wage inequality in the United States has been increasing over the last several decades?
What will be an ideal response?
The classical economists espoused
A. the crude version of the quantity theory of money. B. the sophisticated version of the quantity theory of money. C. both the crude and sophisticated quantity theories of money. D. neither the crude nor sophisticated quantity theories of money.