If the nominal interest rate is 6% and the inflation rate is 2% then the real interest rate is
A) 8%. B) 4%. C) 3%. D) 2%. E) 1%.
B
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A minimum wage that is above the equilibrium wage rate
A) increases efficiency within the labor market. B) increases the quantity of labor demanded. C) creates a deadweight loss. D) has no effect on the labor market because it is set above the equilibrium wage rate. E) None of the above answers is correct.
An "experience good" is one that:
a. Only an expert can use b. Has undetectable quality when purchased c. Can be readily experienced simply by touching or tasting d. Improves with age, like a fine wine e. All of the above
A bank's "required reserves" are:
a. held as deposits with the Federal Reserve System. b. equal to its checkable deposits. c. equal to its transactions deposits. d. none of these.
What do supply and demand curves have in common?
a. They both usually slope upward. b. They both show a relationship between quantity and price. c. They both usually slope downward. d. They can both shift in response to changes in income or wealth. e. Neither of them is influenced by the size of the population.