The real interest rate is negative if the inflation rate
A) equals zero.
B) is less than the nominal interest rate.
C) exceeds the nominal interest rate.
D) is equal to the nominal interest rate.
E) exceeds the real interest rate.
C
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Which of the following is most important for the achievement of higher income levels and living standards?
A) an increase in total employment B) restriction of imports that expand employment in the protected industries C) production of additional goods and services that people value highly relative to the cost of their production D) increases in government spending that create jobs
Refer to Table 21.2. The bottom 20 percent of earners took home ________ of all income earned in Mysteria
A) 5% B) 8.33% C) 10% D) 29.4%
When does a private solution to a negative externality fail to allocate resources efficiently?
What will be an ideal response?