If the nominal interest rate is high and rising, a possible cause is
A) increased lending activity.
B) a rising inflation rate.
C) a falling real interest rates.
D) increased government borrowing.
Answer: B
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Consider the market for high-end wine. Statistics show that wealthier families spend a greater proportion of their income on high-end wine than do poorer families. If households' incomes rise substantially during an economic recovery, then we can expect
a. an increased demand for high-end wine. b. an increased supply of high-end wine. c. a lower price for high-end wine. d. the demand curve for high-end wine to shift to the left.
A policy effort aimed at reducing the damage from residual flows is considered
a. a short-term management strategy b. to be a long-term approach aimed at future environmental deterioration c. a type of pollution prevention (P2) strategy d. an attempt to achieve environmental justice
During a recession, unemployment compensation payments increase without the need for any government action. This increase is an example of
A) discretionary monetary policy. B) automatic monetary policy. C) automatic fiscal policy. D) discretionary fiscal policy. E) government expenditure, but it is not an example of either discretionary or automatic policy.
A system of economic organization in which the ownership and control of production capital assets rests with the state and in which resources are allocated through central planning and political decision making is called
What will be an ideal response?