Under the assumptions of the Fisher effect and monetary neutrality, if the money supply growth rate rises, then
a. both the nominal and the real interest rate rise.
b. neither the nominal nor the real interest rate rise.
c. the nominal interest rate rises, but the real interest rate does not.
d. the real interest rate rises, but the nominal interest rate does not.
c
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Refer to Figure 8A.1. Moving from K0 to K1
A) saving becomes negative. B) capital stock continues to increase. C) depreciation starts to decline. D) economic growth stops.
Suppose that the CPI in Egypt was 111 in 2015 and 122 in 2016. The inflation rate between those two years was approximately
A) 4.8 percent. B) 5.5 percent. C) 9.9 percent. D) 11 percent.
What is pure rent?
What will be an ideal response?
For an inferior good:
a. the income elasticity is positive. b. the income elasticity if negative. c. the income elasticity is zero. d. the income elasticity is unity.