When you subtract the expected rate of inflation from the nominal rate of interest, you calculate the
a. real rate of interest.
b. real rate of inflation.
c. expected rate of interest.
d. expected rate of price increases.
a
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How did the role of government in the East Asian miracle become a factor in the currency crisis of the late 1990s?
What will be an ideal response?
Identify an example of a stock variable
a. The growth in investment in an economy b. The change in the price level in an economy over the years c. The number of unemployed people in an economy in a particular year d. The increase in the money supply in an economy e. The fall in consumer spending during two consecutive years
Supporters of minimum-wage legislation argue that:
A. workers deserve a basic standard of living. B. it should be set below the market equilibrium wage. C. some workers will become unemployed as a result of the minimum wage. D. All of these are true.
Last year, 1,000 cases of cough syrup were sold at $10; this year, 1,200 cases were sold at $12 . The most probable interpretation of these data is that the
a. supply and demand curves are shifting to the right. b. supply and demand curves are shifting to the left. c. supply curve has shifted to the left, with no change in demand. d. demand curve has shifted to the right, with no change in supply.