If the real interest rate is 2% and expected inflation is 2%, the nominal interest rate is:
A) 0%
B) 1%
C) 2%
D) 4%
D
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The international organization that replaced the General Agreement on Tariffs and Trade (GATT) is the
a. World Bank. b. Export-Import Bank. c. World Trade Organization. d. International Monetary Fund.
During economic slowdowns (recessions) the velocity of money tends to:
A. increase dramatically. B. increase slightly. C. decrease. D. remain relatively stable.
Consider a Cournot oligopoly consisting of four identical firms producing good X. If the firms produce good X at a marginal cost of $7 per unit and the market elasticity of demand is ?2, determine the profit-maximizing price.
A. $12 per unit B. $6 per unit C. $8 per unit D. $10 per unit
Which of the following is TRUE of the U.S. trade balance and the federal government budget?
A. In most years since the 1970s, both have been in deficit. B. Both exhibited greater variability before the 1970s than they have since. C. In most years since the 1970s, both have been in surplus. D. The federal government budget deficit was more variable before the 1970s, but the trade deficit has been more variable since.