When prices are rising, which of the following will be true?
A) The real interest rate will be lower than the nominal interest rate.
B) The real interest rate will be higher than the nominal interest rate.
C) The real interest rate will be negative.
D) The nominal interest rate will be negative.
A
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Monetarists consider timing variations in the relationship between money supply changes and income changes to be
A) a fundamental problem of counter-cyclical monetary policy. B) inconsequential relative to the problem of instability in the velocity of money. C) a fundamental long-run problem but not a significant problem in the short run. D) offset by predictable changes in the money multiplier.
When a firm is experiencing economies of scale, long-run
a. average total cost is minimized. b. average total cost is greater than long-run marginal cost. c. average total cost is less than long-run marginal cost. d. marginal cost is minimized.
Recall the Application the Joint Committee on Taxation and how Congress accounts for the dynamic effects of its policies to answer the following questions.According to the Application, the Trump Tax cuts would have increased the deficit by ________ billion, without taking into account the dynamic effects.
A. $1456 B. $1591 C. $286 D. $641
Monopolies that price discriminate do so because
A. it keeps them out of trouble with the government. B. it is more efficient. C. they can increase their profits. D. they are able to do so and no one else can.