The difference between the nominal interest rate and the real interest rate is:
A. the inflation rate.
B. taxes.
C. seigniorage.
D. hyperinflation.
Ans: A. the inflation rate.
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If the supply of aisle seats equals the supply of middle seats on an airplane, and the demand for aisle seats is _____________ than the demand for middle seats, then the equilibrium price of aisle seats will be ______________ the equilibrium price of middle seats
A) greater; higher than B) less; higher than C) greater; lower than D) less; the same as
A_________________is a situation where suppliers offer different amounts of products for sale at all possible prices in a market.
Fill in the blank(s) with the appropriate word(s).
The greater is the marginal propensity to consume, the:
A. smaller is the marginal propensity to save. B. higher is the interest rate. C. smaller is the average propensity to consume. D. lower is the price level.
A proportional income tax means that those with a higher income pay
A. a lower percentage of their income in taxes than low-income people. B. the same percentage of their income in taxes as low-income people. C. a higher percentage of their income in taxes than low-income people. D. all the taxes in the economy.