The ABC Corporation earned a real rate return of 4.5 percent on an investment. In the economy, the nominal rate of interest was 6 percent and the rate of inflation was 3 percent. We can conclude that
A) the investment was unprofitable.
B) the investment was profitable.
C) the real rate of interest was 9 percent.
D) the real rate of interest was 1.5 percent.
Answer: B
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If the Fed sells $100 million of U.S. government securities, what happens to the quantity of money?
What will be an ideal response?
Naturally born members of the U.S. population resisted immigration in the antebellum period for all of the following reasons except
(a) Immigrants were prisoners and outcasts from other countries. (b) Immigrants could gain political power and possess political influence. (c) Immigrants displaced U.S. born laborers. (d) Immigrants brought their own religions and spiritual beliefs.
A nation can accelerate economic growth by increasing its production of consumer goods
a. True b. False Indicate whether the statement is true or false
Suppose a small economy produces only MP3 players. In year 1, 10,000 MP3 players are produce and sold at a price of $100 each. In year 2, 12,000 MP3 players are produced and sold at a price of $80 each. Which of the following statements is true?
A. Real GDP and nominal GDP both increase B. Real GDP increases while nominal GDP remains constant C. Real GDP decreases while nominal GDP increases D. Real GDP increases while nominal GDP decreases