When the inflation rate is positive, the
A) real interest rate is greater than the nominal interest rate.
B) real interest rate is less than the nominal interest rate.
C) nominal interest rate is zero.
D) real interest rate equals the nominal interest rate.
B
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A rent ceiling set below the equilibrium rent will
A) increase search activity. B) decrease search activity. C) have no effect on search activity. D) shift the housing supply curve rightward.
A legal restriction on the amount of a good that can be imported into a country is known as a
A) voluntary restraint agreement. B) tariff. C) quota. D) Domestic Protection Restraint (DPR).
Bob Smith's money wages rose from $32,000 to $48,000, while the CPI rose by 50%. His real wages
A. fell by 50%. B. stayed the same. C. rose by 25%. D. rose by 50%.
Low-cost Eurocurrency loans can be obtained in offshore financial centers.
a. true b. false