If the real interest rate is 3% and the inflation rate is 6%, the nominal interest rate is
a. 2%
b. 3%
c. 9%
d. 18%
c
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In 2012, the bottom one-fifth of U.S. households earned ________ of the nations total income
A) just over 3% B) just under 9% C) approximately 25% D) just under 50%
You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. The CPI over that year rises from 180 to 200. What is the real interest rate you are paying?
A) 15% B) 5% C) -1.1% D) -6.1%
A monopolistically competitive firm maximizes profit by producing where marginal revenue equals marginal cost.
Answer the following statement true (T) or false (F)
Refer to the information provided in Table 24.2 below to answer the question(s) that follow. Table 24.2
Refer to Table 24.2. At an output level of $1,500 billion, the level of aggregate expenditure is ________ billion.
A. $1,300 B. $1,400 C. $1,500 D. $1,600