"If the inflation rate is positive, then the real interest rate is greater than the nominal interest rate." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
The statement is incorrect. The nominal interest rate equals the real interest rate plus the inflation rate. Therefore, if the inflation rate is positive, the nominal interest rate is greater than the real interest rate.
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Which of the following is a likely consequence of a fall in private investment?
A) Mortgage defaults fall. B) Asset prices rise. C) Labor supply falls. D) Consumption falls.
One of the influences that the world economy has on U.S. aggregate demand comes from changes in
A) foreign income. B) world opinion. C) foreign aid. D) world pollution. E) foreign governments.
In an unregulated competitive market, the presence of marginal external benefit from a good or service results in less than the efficient quantity being produced
Indicate whether the statement is true or false
The payment received by suppliers of entrepreneurial skills is called rent
Indicate whether the statement is true or false