If the nominal interest rate is the same as the real interest rate, then inflation must be:
A. zero.
B. higher than the nominal rate of interest.
C. lower than the nominal rate of interest.
D. negative.
A. zero.
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The federal government's budget been in deficit every year since 1959
a. True b. False
Terrell, an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour, is
a. counted as part of the labor force. b. considered frictionally unemployed. c. an underemployed worker. d. not counted as part of the labor force. e. considered as productively active.
Which of the following correctly explains the crowding-out effect?
a. An increase in government expenditures decreases the interest rate and so increases investment spending. b. An increase in government expenditures increases the interest rate and so reduces investment spending. c. A decrease in government expenditures increases the interest rate and so increases investment spending. d. A decrease in government expenditures decreases the interest rate and so reduces investment spending.
Macroeconomics differs from microeconomics in that macroeconomics focuses on:
A. the performance of national economies and ways to improve that performance. B. prices in specific markets. C. individual choices and group behavior in individual markets. D. production in specific markets.