Yvonne takes out a fixed-interest-rate loan and then inflation turns out to be higher than she had expected it to be. The real interest rate she pays is
a. higher than she had expected, and the real value of the loan is higher than she had expected.
b. higher than she had expected, and the real value of the loan is lower than she had expected.
c. lower than she had expected, and the real value of the loan is higher than she had expected.
d. lower then she had expected, and the real value of the loan is lower than she had expected.
d
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The multiplier-accelerator model was developed by
A) Paul Samuelson. B) classical economists. C) Walter Heller. D) John Maynard Keynes.
________ in the desired reserve ratio will ________ the money multiplier
A) An increase; have no effect on B) An increase; decrease C) A decrease; decrease D) A decrease; will have no effect on
If the demand for high definition televisions increases and the supply of high definition televisions increases, then
A) it is clear that prices will increase; the change in the quantity of televisions sold is ambiguous. B) it is clear that prices will decrease; the change in the quantity of televisions sold is ambiguous. C) it is clear that quantity sold will increase; the change in the price of televisions is ambiguous. D) it is clear that quantity sold will decrease; the change in the price of televisions is ambiguous.
The Federal Reserve Board of Governors
a. rotate each four years. b. are appointed by the President and confirmed by the Senate. c. are elected by popular vote. d. hold lifetime appointments.