Jane is willing to pay $80 for a pair of shoes. The actual price of the shoes is $50. Her marginal benefit is
A) $80.
B) $30.
C) $50.
D) $1300.
A
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An increase in the actual rate of inflation is most likely to cause a decrease in ________
A) the ex post real interest rate B) the ex ante real interest rate C) the nominal interest rate D) the expected real interest rate E) none of the above
If restrictive monetary policy results in a slowdown in the domestic inflation rate and higher real interest rates, other things constant, the
a. nation's currency will appreciate. b. nation's currency will depreciate. c. nation will run a balance of trade surplus. d. nation will run a capital account deficit.
Real GDP is gross domestic product measured
A. in current dollars. B. as the difference between the current year's GDP and last year's GDP. C. at a constant output level but at current prices. D. in the prices of a base year.
Suppose that an economy is initially operating at a point on its PPC. If it then experiences an expansion in its production capacity, but its total spending does not rise as fast as its capacity, the economy will end up:
A. Still on its PPC B. Outside its PPC C. Inside its PPC D. On one of the axes of its PPC