If the inflation rate is 10 percent and the real interest rate is 12 percent, the nominal interest rate is:
A. 2 percent.
B. zero percent.
C. 10 percent.
D. 22 percent.
D. 22 percent.
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In 1990, there were 50 bilateral agreements and regional trade agreements between countries. Today there are
A) more than 230 of these agreements. B) 30 of these agreements. C) none of these agreements remaining. D) more than 10,000 of these agreements.
Keynesian economists, like classical economists, believed that prices and wages were flexible in both directions
Indicate whether the statement is true or false
The distribution of income in a market economy is determined by
a. the level of employment and prices of the factors of production. b. the prices of factors of production. c. largely unknown forces which economists seek to discover. d. decisions of government offices related to distribution.
The statement that "the unemployment rate will increase as the economy moves into a recession" is an example of:
A. a generalization. B. a microeconomic statement. C. marginal analysis. D. a normative statement.