The real rate of interest can be defined as the
A. the market rate of interest expressed in today's dollars.
B. nominal interest rate less the anticipated rate of inflation.
C. anticipated rate of inflation less the nominal interest rate.
D. nominal rate of interest less the unanticipated rate of inflation.
Answer: B
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Answer the following statement true (T) or false (F)
Monopolistic competition is a market structure characterized by many small firms selling a homogeneous product.
Answer the following statement true (T) or false (F)
The Federal Reserve sets _____ policy, while the president and Congress set _____ policy. These two policies influence aggregate _____
Fill in the blank(s) with correct word
Comparative advantage in production is achieved by
A. Subsidizing, specializing, and lowering the price of an exported good. B. Being able to produce a good with fewer inputs than in other countries. C. Having a lower opportunity cost of producing a good relative to that of other countries. D. Having terms of trade that are better than the terms of trade faced in other countries.