The real interest rate is 4% a year. When the expected inflation rate is zero, the nominal interest rate approximately ... % a year; and when the expected inflation rate is 2% a year, the nominal interest rate is approximately ... % a year
What will be an ideal response?
4; 6
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Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor-force participation rate of males remains higher than that of females
a. True b. False Indicate whether the statement is true or false
Developing countries are not typified by the following:
a. high literacy rates b. high unemployment rates c. high fertility rates d. high exports of primary products
The sacrifice ratio is the
a. sum of the inflation and unemployment rates. b. inflation rate divided by the unemployment rate. c. number of percentage points annual output falls for each percentage point reduction in inflation. d. number of percentage points unemployment rises for each percentage point reduction in inflation.
In order to achieve a high economic freedom rating, a country must
A) provide citizens with housing, health care, and other basic goods free of charge. B) protect property rights, enforce contracts even-handedly, and rely extensively on markets to allocate goods and services. C) use the taxing power of the state to redistribute income from the rich to the poor and thereby promote income equality. D) elect political officials democratically.