If the CPI increased from 215 to 218 between the years 2012 and 2013, while the nominal interest rate increased from 3.25% to 3.80%, what is the real interest rate in 2013?
2.4%
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The steeper the LM curve
A) the more effective is monetary policy. B) the less effective is monetary policy. C) the greater is the interest-sensitivity of investment. D) the greater is the interest-sensitivity of the money supply.
Advertising:
A. is valuable because it provides free information about products and prices to consumers. B. is harmful because it creates a false sense of differentiation, driving prices up unnecessarily. C. Neither A nor B is true. D. Both A and B are true.
Suppose that Germany, France, Estonia, and India all have the same production possibilities, illustrated in the figure above. Based on the production points in the figure, which country is most likely to expand its PPF to PPF1?
A) France B) France and Germany equally C) India D) Germany E) Estonia
What does it mean for an industry to be considered an increasing cost industry?
What will be an ideal response?