The decrease in consumption and investment interest-related spending that occurs when the interest rate rises as government spending increases is called:
A) crowding in.
B) crowding out.
C) neutral.
D) none of the above.
B
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When the Fisher Effect holds, a one-percentage-point increase in the long-run money growth rate, because it ________ expected inflation, causes ________ in the nominal interest rate in the long run
A) equally lowers, a one-percentage-point decrease B) does not change, a one-percentage point decrease C) does not change, no change D) equally raises, no change E) equally raises, a one-percentage-point increase
The difference between the money interest rate and the real interest rate is the
a. prime interest rate. b. nominal interest rate. c. exchange rate. d. inflationary premium.
New growth theory puts emphasis on
A) ideas. B) experimenting with new ways of doing things. C) rearranging resources in ways that are more valuable. D) b and c E) a, b, and c
A monopolistically competitive firm is one:
A. of many firms that all sell the exact same product. B. that behaves like a monopolist. C. of many firms that sell products that are close but not perfect substitutes. D. of a small number of firms that sell products that are close but not perfect substitutes.