If the nominal interest rate is 8 percent and inflation is 3 percent, approximately what is the real interest rate?
A) 11 percent
B) 8 percent
C) 5 percent
D) 3 percent
C
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If the supply curve and the demand curve both shift to the left, then the new equilibrium:
A. price will be lower, but the direction of the change in quantity is uncertain. B. quantity will be higher, but the direction of the price change is uncertain. C. price will be higher, but the direction of the change in quantity is uncertain. D. quantity will be lower, but the direction of the price change is uncertain.
Ajax has just discovered that the marginal revenue product generated by the last worker hired was $75 while the marginal factor cost was $95. What should Ajax do?
A) Leave the level of production unchanged. B) Increase the amount produced. C) Reduce the amount produced. D) Collect more information before making a decision.
Sterilization occurs when a central bank offsets the effects of expansionary monetary policy through foreign exchange market intervention
a. True b. False Indicate whether the statement is true or false
If personal income taxes are increased, disposable income and consumption
a. increase. b. stay the same. c. decrease. d. change in an unpredictable direction.