Real interest rates at times have been negative. Why would anyone lending money agree to a negative real interest rate?
What will be an ideal response?
The lender did not agree to a negative real interest rate, instead unanticipated inflation occurred. If the actual inflation rate exceeds the anticipated inflation rate, the actual real interest rate received by lenders and paid by borrowers can end up negative.
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The major provisions of the Competitive Equality Banking Act of 1987 include
A) expanding the responsibilities of the FDIC, which is now the sole administrator of the federal deposit insurance system. B) the establishment of the Resolution Trust Corporation to manage and resolve insolvent thrifts placed in conservatorship or receivership. C) directing the Federal Home Loan Bank Board to continue to pursue regulatory forbearance. D) prompt corrective action when a bank gets in trouble.
If whooping cranes generate benefits to some members of society by merely their continued existence, then economic markets will consider this in arriving at a level of their provision "as if by an invisible hand."
Indicate whether the statement is true or false
The "labor-force participation rate":
a. Equals the number of people employed divided by the number of people employed and unemployed. b. Equals the number of people unemployed and actively seeking work divided by the non-institutional population over 16 years of age. c. Is ironically very similar from one country to another. d. Equals the number of people employed and unemployed (and actively seeking work) divided by the non-institutional population over 16 years of age and varies from country to country due to economic incentives, cultural backgrounds, expectations, and religious beliefs. e. None of the above is correct.1.The labor force: a. Is made up of individuals who are employed, individuals without a job and actively seeking work, and individuals without a job and not actively seeking work. b. Is made up of individuals who are employed and individuals without a job and actively seeking work. c. Is basically the same as a nation's non-institutional population over 16 years of age. d. Rises with each new birth.
GDP is used as the basic measure of a society's economic well-being. A better measure of the economic well-being of individuals in society is
a. saving per person. b. GDP per person. c. government expenditures per person. d. investment per business firm.