Suppose that your bank pays 5 percent interest on your savings account balance. Is this the nominal or real interest rate? What would be your real interest rate?
This is the nominal interest rate. The real interest rate would be the 5 percent minus the rate of inflation.
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Capital is a factor of production. An example of capital as a factor of production is
A) machines. B) education. C) stocks. D) money. E) bonds.
Private insurance companies have been out of the flood insurance business for decades. After their departure the government has gone into the business by granting coverage with below-market premiums
Why might this be in inefficient outcome? Comment on the amount of housing that we should expect to see along our nation's coastlines. Also, discuss the degree of danger that this poses for both property and lives when hurricanes strike.
What happened to the measure of money, M0, which includes only cash, bank reserves, and deposits at the Federal Reserve during the crisis?
a. It shrank measurably. b. It expanded slightly. c. It more than doubled. d. There was no change in MO.
In Figure 21.4, a firm that produces between 600 and 800 units per period should choose a plant with a short-run average total cost function of
A. ATC2 only. B. ATC3 only. C. ATC2 or ATC3. D. ATC1 only.