As long as prices are rising over time, then
a. the nominal interest rate exceeds the real interest rate.
b. the real interest rate exceeds the nominal interest rate.
c. the real interest rate is positive.
d. the nominal interest rate is a better indicator than the real interest rate of how fast the purchasing power of your bank account is changing over time.
a
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Indifference curves tend to be convex because ________
A) they are bowed inwards toward the origin B) consumers dislike large fluctuations in consumption from one period to the next C) of the gap between real and nominal interest rates D) the marginal rate of substitution exceeds the price effect
Suppose the market price of zinc doubles. Which of the following scenarios is most likely?
A) The demand for zinc miners will increase, raising the market wage rate. B) The demand for zinc miners will decrease, reducing the market wage rate. C) The demand for zinc will increase, raising the market price further. D) The demand for zinc miners will decrease, reducing the market price back to its original price.
The impact of computers on U.S. productivity growth: a. has been disappointingly small—about one-half percentage point annually between 1972 and 1996. b. has been dramatic, contributing to significant growth during the early years of the 21st century. c. has been significant in the health care sector but not elsewhere
d. has actually been negative in most industries. e. was greater during the period 1972–1990 than it has been since that time.
If the MPC is 2/3, then 2/3 of the effect of an increase in government purchases on aggregate demand will come from increased consumption
a. True b. False Indicate whether the statement is true or false