The real rate of interest is
a. interest paid by commercial banks.
b. interest paid by the Fed.
c. equal to the money rate of interest plus the inflationary premium.
d. the money rate of interest adjusted for inflation.
D
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The aggregate demand curve shows the
A) total amount of nominal goods that the participants in the economy want to purchase. B) amount of goods producers will produce as production costs fall. C) total amount of real goods that foreigners want to purchase. D) total amount of planned expenditures on goods and services at each possible price level.
COLA stands for:
A. cost-of-living aggregate. B. capital operations leasing adjustment. C. capital operations leasing agreement. D. cost-of-living adjustment.
Gold would be a superior commodity money compared to wheat because:
A. it is easier to divide wheat into small units. B. wheat has more practical uses than gold. C. wheat is perishable. D. wheat has a high value relative to weight, which gold does not.
The imposition of a tax on a good or service would be represented as
A. an increase in demand. B. an increase in supply. C. a decrease in demand. D. a decrease in supply.