Determining “what ought to be” in the economy is considered
a. positive economics.
b. normative economics.
c. distributive economics.
d. mesoeconomics.
b. normative economics.
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In the 19th century hospitals had notorious reputations—questionable places to visit, risky places to stay. What advances changed all this?
a. Development of the germ theory of disease. b. Advances in medical technology. c. Availability of health insurance to pay the bills. d. All of the above.
If the inflation rate exceeds the nominal rate of interest:
a. the real interest rate is negative. b. All of the answers are correct. c. lenders lose. d. savers lose.
During a certain year, the consumer price index increased from 120 to 132 and the purchasing power of a person's bank account increased by 4 percent. For that year,
a. the nominal interest rate was 6 percent. b. the nominal interest rate was 14 percent. c. the inflation rate was 12 percent. d. the inflation rate was 9 percent.
The narrowest definition of money is:
A. M1. B. M2. C. hard money. D. L.