If the real interest rate is equal to the nominal interest rate in an economy:
A) inflation must be negative in the economy.
B) inflation must be zero in the economy.
C) inflation must be positive in the economy.
D) the nominal interest rate must be zero.
B
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A supply schedule is a table that reports:
A) the expected excess supply in the market at different prices. B) the profits earned by producers at different levels of production. C) the different quantities of a good that producers are willing to sell at different prices. D) the different quantities of a good that producers are willing to sell at different income levels.
Value and price can be compared by noting that
A) they are the same thing. B) value is always greater than price. C) value is what we must pay, while price is what we are willing to pay. D) price is what we must pay, and value is what we are willing to pay. E) value is what the seller receives when we buy a good, and price is what we must pay when we buy a good.
Which of the following is a benefit of the price system?
A) the existence of positive externalities B) the production of public goods C) Consumers have what they want since politicians and business managers decide what is to be produced. D) the freedom of consumers to decide what they want to purchase
Why is the demand curve for labor downward-sloping? What causes the labor demand curve for a firm to shift?
What will be an ideal response?