What happened to real interest rates during the early 1930s?
A) They declined as nominal interest rates declined.
B) They rose as nominal interest rates rise.
C) They declined due to deflation.
D) They rose due to deflation.
D
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The average cost of the distortion created by taxes
A) increases proportionately with the tax rate. B) is lower when the tax rate is constant than when it fluctuates. C) is higher when the tax rate is constant than when it fluctuates. D) equals the square root of the tax rate.
Given the following hypothetical data where C = $3,000; I = $1,200; G = $2,000; X ? M = ?$500; depreciation = $200; transfer payments = $800, net domestic product is _____
a. $5,500 b. $5,700 c. $6,200 d. $6,400 e. $6,900
If money demand shifts right, the price level falls
a. True b. False Indicate whether the statement is true or false
The Federal Reserve System is
A. controlled by the Department of the Treasury. B. the central bank for the United States. C. completely similar to the Bank of England. D. All of the above are correct.