If the expected inflation rate rises from 3% to 5% when the nominal interest rate is 4%, the Fisher effect asserts that the nominal interest rate would
A) not change.
B) rise to 6%.
C) fall to 2%.
D) fall to 3%.
B
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At any given time, which factor of production is NOT fixed?
A) labor B) technology C) entrepreneurship D) land E) money
Why would an increase in the minimum wage to $15 per hour lead to more unemployment for teenage and low-skilled workers?
What will be an ideal response?
The two main determinants of money demand are
A) GDP and the money supply. B) aggregate supply and aggregate demand. C) interest rates and income. D) the inflation rate and the money supply.
Other things equal, if planned investment spending is greater than actual investment spending, then aggregate expenditure will be ________ real GDP and inventories will ________
A) greater than; rise B) greater than; fall C) less than; rise D) less than; fall