If the expected inflation rate was 2.5%, the expected real interest rate was 4.0%, and the real interest rate turned out to be 5.1%, then the actual inflation rate equals
A) 1.4%.
B) 1.5%.
C) 2.6%.
D) 6.5%.
A
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External balance refers to
A) an economy which is on its LM curve. B) an economy which is on its IS curve. C) an economy which is on its BP curve. D) All of the above.
Barriers to entry might include all but which of the following?
a. Huge capital expenditures required to get started in production b. Patents c. Sole ownership of a strategic resource d. Exclusive government franchise e. Positive economic profit
A pure monopsony exists in a labor market when
A. a labor union dominates the labor market. B. a single buyer buys all of a given type of labor that has few other employment opportunities. C. only a few firms purchase the services of labor in the market. D. many competing firms purchase the services of labor in the market.
Which of the following is NOT a characteristic of a laissez-faire system?
A. Enforcement of contracts B. Protecting private property rights C. Minimal government intervention D. Public ownership of all capital